Contact: Applicant Mob: +XXX XXX XXX E-mail: XXX@XXXX.com January 2022 Business Plan for E-2 Visa Sample Company LLC
2 Sample Company LLC Sample Company LLC BUSINESS PLAN Table of Contents THE E-2 VISA BENEFICIARY ..................................................................... 6 THE US COMPANY DETAILS..................................................................... 7 Company Ownership ................................................................................ 7 Company Location .................................................................................... 7 Management Summary ............................................................................ 8 INVESTMENT & FINANCIAL DETAILS ....................................................... 8 Applicant Investment Details ................................................................... 8 Objectives ............................................................................................... 10 Financial Highlights................................................................................. 10 BUSINESS DESCRIPTION........................................................................ 11 The Company’s sales channels and marketing strategy ......................... 12 Online freight forwarding agencies .................................................... 12 Trade Association events .................................................................... 12 Best load boards for owner-operators ............................................... 12 Reviews of current customers ............................................................ 12 Corporate customers .......................................................................... 13 Online Presence .................................................................................. 13 Pricing and revenue ................................................................................ 13 Stuffing Needs ........................................................................................ 13 Operation costs ...................................................................................... 14
3 Sample Company LLC Sample Company LLC BUSINESS PLAN TRUCKLOAD MARKET OVERVIEW ......................................................... 15 Market size ............................................................................................. 15 LTL services ............................................................................................. 19 Market Drivers in 2022 ....................................................................... 22 Competition ........................................................................................ 25 Competitive Edge ................................................................................ 25 STRATEGY & IMPLEMENTATION SUMMARY ......................................... 26 MANAGEMENT SUMMARY................................................................... 28 FINANCIAL PROJECTIONS...................................................................... 29 CONCLUSION........................................................................................ 34 List of Figures Figure 1 The Company's vans....................................................................................................... 5 Figure 2 Sample Company LLC's office location .................. Ошибка! Закладка не определена. Figure 3 Financial highlights....................................................................................................... 10 Figure 4 The transportation market........................................................................................... 15 Figure 5 Size of the truckload market in the U.S. between 2018 and 2021 ............................... 16 Figure 6 Number of enterprises in the truckload market in the U.S. ......................................... 16 Figure 7 Volume of freight moved by trucks in the United States from 2014 to 2020............... 17 Figure 8 Employment in U.S. truck transportation industry from 2000 to 2020........................ 18 Figure 9 Industry revenue of couriers and express delivery services......................................... 18 Figure 10 Leading LTL carriers in North America based on revenue .......................................... 19 Figure 11 Number of enterprises in the truckload market in the U.S. ....................................... 20
4 Sample Company LLC Sample Company LLC BUSINESS PLAN Figure 12 Less-than-truckload market size in the U.S. ............................................................... 20 Figure 13 Primary types of services offered by trucking companies in North America.............. 21 Figure 14 Industry revenue of LTL in Texas ................................................................................ 22 Figure 15 Greatest challenges for truckerts in the trucking market in the United States in 2021 ................................................................................................................................................... 23 Figure 16 Unemployment rate in the USA ................................................................................. 24 Figure 17 LTL market total wage payables in the U.S................................................................. 25 Figure 18 Number of vans.......................................................................................................... 27 Figure 19 Number of drivers ...................................................................................................... 27 Figure 20 Annual revenue .......................................................................................................... 29 Figure 21 Break-even analysis.................................................................................................... 31 List of Tables Table 1 Investment fund and start-up expenses.......................................................................... 9 Table 2 Financial projections, thousands USD ........................................................................... 10 Table 3 Pay rates of employees ................................................................................................. 14 Table 4 Calculation of personnel's fixed wages ......................................................................... 14 Table 5 Monthly general costs, USD .......................................................................................... 14 Table 6 Total start-up expenses ................................................................................................. 26 Table 7 Revenue and COGS forecast, thousands USD................................................................ 29 Table 8 Personnel forecast ........................................................................................................ 30 Table 9 Profit and Loss statement, thousands USD ................................................................... 30 Table 10 Cash flow statement, thousands USD ......................................................................... 31 Table 11 Balance statement, thousands USD ............................................................................ 33 Table 12 Cash Flow, thousands USD .......................................................................................... 35 Table 13 Balance sheet, thousands USD .................................................................................... 36
5 Sample Company LLC Sample Company LLC BUSINESS PLAN Executive Summary Most of the U.S. goods are transported by road; this is a vast and demonopolized market. Like all spheres of life in the United States, it is relatively rigidly standardized, creating equal conditions for participants. But at the same time, it is well organized, reasonably simple in regulation and inspection rules, and free from corruption. This business plan describes the creation of a new business in the industry. Sample Company LLC launched for $XXX,XXX with the investments of Applicant, who is the sole owner and the CEO of the Company. The business was established with two cargo vans which have already been purchased on X/XX/20XX and X/XX/20XX respectively. Gross margins will be around XX%, allowing for significant profit by the end of the 5 years as the business scales up. Today Sample Company LLC has already been registered; X cargo vans have been bought (see figure 1), and the Company has already started its operations in February of 20XX. F i g u r e S E Q F i g u r e _ \ Figure 1 The Company's vans
6 Sample Company LLC Sample Company LLC BUSINESS PLAN The E-2 Visa Beneficiary The business activities described in this Business Plan will be overseen by its founder – Applicant, who will be the Company's CEO. Applicant has the vast educational and entrepreneurial experience to lead the company successfully. In 20XX he graduated from the XXX Academy of Transport and Communications named after M. Applicant, where he obtained a specialty degree in Motor Transport and Motor Car Industry. Besides strong educational background, Applicant has over XX years of experience in the field of cargo transportation and in other industries. From July 20XX to January 20XX he worked at Aircraft Repair Plant as a Procurement Engineer. In 20XX he was promoted to the position of Senior Procurement Engineer. From January 20XX to October 2018 – he worked as a self-employed and participated in the development of car sales and tuning business. From October 20XX to January 20XX, he founded a company XXXXX-K IE specializing in complex sales and delivery of aviation and cement industry equipment. In October 20XX he became an Executive Director of XXX Company. The company provides complex delivery services to enterprises in various industries. In January 2020 he acquired the role of the company’s Director and 100% owner. Among the professional experience of Applicant, the following can be highlighted: ● Organization of the supply of all material resources for the plant’s production activity. ● Calculation of the plant’s needs in materials. ● Creation of plant material and technical supply project plans. ● Coordination and specification of technical requirements and characteristics of material and technical resources with suppliers. ● Comparative analysis of various suppliers’ terms and prices. ● Development of material release limits and control over their usage.
7 Sample Company LLC Sample Company LLC BUSINESS PLAN ● Determined the reasons for divergence from the established material release limits. ● Worked with the drafts of agreements with suppliers ● Prepared the documents on suppliers’ complaints. ● Coordinated the changes in contract conditions with the suppliers. ● Control over the suppliers' materials and goods delivery to the company’s warehouse. ● Kept record of the material resources and wrote reports. Taking into account all the information, given above, we can assume that Applicant’s experience will be a crucial instrument that will help to establish the business successfully. Additionally, his knowledge and working experience in the field transport industry will allow him to oversee the business operations of Sample Company LLC. The US Company Details Sample Company LLC is a cargo transportation company that provides cargo transportation services in LTL (less-than-truckload) category (express delivery) throughout the United States. The Company was registered in Texas on the XXst of December 20XX. Company Ownership Sample Company LLC is owned by Applicant (100%), XXXX nationality. Applicant received a bachelor’s degree in mechanical engineering from the XXXX of Transport and Communication in XXXX in 20XX. Besides that, he used to work with large-size transportation equipment and successfully dealt with managerial tasks within the transportation processes. No doubt, such educational background, and work experience will be beneficial for the Company. Company Location Sample Company LLC will maintain a physical office in the following location: XXXXX/XXX-XXX
8 Sample Company LLC Sample Company LLC BUSINESS PLAN An Office Lease Agreement was signed on April XXth, 2022. The Company's office will be used for operational and administrative purposes. The company also signed a parking rental agreement on April XXth, 2022. The parking space is located at XXXX/XXX-XXX. Management Summary Applicant will manage the business as the Chief Executive Officer. In this position, he will be responsible for the operations, and overall control of the drivers, vehicles, & equipment overview. Besides that, Applicant will develop the Company’s strategy, establish relationships with the main contractors, evaluate and track staff experience and oversee the cargo transportation basic trends and tendencies to better suit the business to them. The full list of Applicant’s responsibilities is shown below: ● Direct and coordinate financial and operational activities, increase the efficiency of the company. ● Analyze operations to evaluate company performance. ● Direct and coordinate pricing/sales/provision of services. ● Direct, plan and implement policies, and objectives of the company to ensure continuing operations, maximize returns on investments and increase the productivity of the business. ● Prepare schedules, assign work to drivers, and monitor the performance and timelines. ● Develop relationships with internal and external clients, network, and overall growth initiatives. As the Company's CEO, Applicant will use his business experience to make the Company a strong player in the US cargo transportation market. Investment & Financial Details Applicant Investment Details F i g u r e S E Q F i g u r e \ * A R A B I C 1 S a m p l e C o m p a n y L L C ' s o f f i c e l o c a t i o n
9 Sample Company LLC Sample Company LLC BUSINESS PLAN The Applicant shall make an initial investment of capital, contemporaneously with the execution of this Agreement, as follows: NAME CONTRIBUTION % OWNERSHIP Applicant Cash: $XXX,XXX 100% Investment fund and start-up expenses spent as of April, 2022 (up to $XX,XXX) are in Table 1: Table 1 Investment fund and start-up expenses Investment Name Amount Details Applicant Total Investment Payment for Cargo Vans (fixed assets) Name Amount Details Down Payment for Van #1 Payment for Van #1 1st Payment for Van #2 2nd Payment for Van #2 Total amount paid for transport equipment Other Start Up Expenses Name Amount Details Consulting services fee Office rent Monthly payment Parking rent Monthly payment Total Expenses
10 Sample Company LLC Sample Company LLC BUSINESS PLAN Total Start-up Expenses Objectives ● Recruit the qualified personnel (already done); ● Acquire all the necessary assets for the Company's market success, such as the strategic partners and advanced software; ● Obtain the licensing and permissions (already done); ● Generate enough revenue to expand operations; ● Further business growth and development. Financial Highlights The following table and graph illustrate the business goals of the Company during the next five years: Table 2 Financial projections, thousands USD 2022 2023 2024 2025 2026 Total Revenue Gross Margin Operating Expenses EBITDA Net Profit Profitability Ratios F i g u r e S E Q F i g u r e \ * A R A B I C 2 F i n Figure 2 Financial highlights
11 Sample Company LLC Sample Company LLC BUSINESS PLAN 2022 2023 2024 2025 2026 Gross Margin/Revenue EBITDA/ Revenue Net Profit % Net Cash Flow Cash Balance Ending Business Description Sample Company LLC will provide goods and transportation services to its customers. The company’s services will be provided with cargo vans that have already been purchased by the company. The Company will offer the following services for companies across the states: ● Delivery of loads from and to locations in its geographic range. ● Less-than-truckload (LTL) services. ● Offer the clients detailed information about their orders, including the location of a van hauling their loads, the delivery order status including the expected arrival time for delivery. ● Phone support for all clients’ questions, delivery changes, and scheduling ● Van will be operated by qualified and well-trained drivers with a spotless record. 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.
12 Sample Company LLC Sample Company LLC BUSINESS PLAN The Company’s sales channels and marketing strategy The Company will aim to use the following strategy and every tactic available to increase the number of orders. Online freight forwarding agencies Freight forwarders connect shippers to truckers, which is a good option for a company like ours as we’re just starting. Freight forwarders help find orders for owner-operators and fleet owners. The best part is they do most of the legwork for us. We believe the brokers make it easier for our Company to get more orders because they usually have a relationship with the shippers. Trade Association events The Company can attend public trade shows which will help attract the attention of an engaged audience. This way of business promotion was problematic during the peak of the COVID-19, however, as the pandemic restrictions are being lifted, live events have become a viable marketing option. Additionally, even if the offline shows will still not be organized in the foreseeable future, there are numerous online events, participation in which can also be beneficial for the company. Best load boards for owner-operators Load boards are another method that connects shippers directly to the trucking companies. These boards make it very convenient to find freight loads by having multiple listings to choose from, and most of the shipment details are spelled out. Reviews of current customers The company will ask the customers to write and post comments on the experience of provided services. The reviews can be published on social media or special review platforms. The key benefit of this method is that these sites often appear at the top of the search results allowing the potential clients to verify the quality of the company’s delivery services.
13 Sample Company LLC Sample Company LLC BUSINESS PLAN Corporate customers Negotiate with local factories / private companies and sign a contract for 1-2 years to organize express delivery of their products across all states. Online Presence The company has developed a website with a modern design and optimized it for Google promotion to utilize social media and use promotion in traditional media from time to time, mostly in local or professional media. Web-site Pricing and revenue The Company's revenue is forecasted as follows: the average speed for cargo vans traveling between states in the US is XX mph. Multiplying it by the average drivers’ working hours (XX per day), we get the average distance for cargo transportation per day. We multiply this value by the price of 1 mile of transportation. It is $X.XX. Thus, we get the price for one day of cargo transportation. Multiplying this value by XX, we get the revenue of one truck per month. Stuffing Needs The number of employees on the Company’s managing team will change in accordance with the number of trucks owned by the company. At the beginning of 2022, the crew consists of X people: ● CEO (1 employee). ● Driver (X employees). When an additional truck will be bought – an extra Driver will be hired. Drivers’ wages are calculated as a percentage of revenue. The table below shows the pay rates for personnel.
14 Sample Company LLC Sample Company LLC BUSINESS PLAN Table 3 Pay rates of employees CEO Driver Table 4 Calculation of personnel's fixed wages Wages per month, $, 2022 Wages per month, $, 2023 Wages per month, $, 2024 Wages per month, $, 2025 Wages per month, $, 2026 CEO Operation costs The Company operating costs consist of general expenses. Detailed costs information about the composition of costs can be found in table 5. Table 5 Monthly general costs, USD Expenses Value per month, $ Tools and Equipment Parking Insurance/car Office rent
15 Sample Company LLC Sample Company LLC BUSINESS PLAN Truckload Market Overview 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, are in the construction industry. Trucking is responsible for most of the overland freight movement in the United States, with the market being worth 732.3 billion US dollars in 2020. At that time, over 902,000 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 from 2015 to 2020, the Shipping Services industry has experienced varied trends but has improved overall. Until the onset of COVID-19 in 2020, low unemployment and improving income levels in the United States caused consumer spending to increase, leading to increased demand for shipping services. From 2016 to 2021 the freight transportation services index, a measure of freight trafficking volume grew at an average annualized rate of 2.08% The pie chart shown in figure 3 illustrates the segmentation of the transportation market. As can be seen from the chart, trucking composes the major part of the total transportation market with a share of 64%. Though the other ways of transportation develop rapidly, the transportation by truck is still the most preferable option. The truckload market in the US grew steadily over the last 4 years (figure 4). The overall growth was 2% and CAGR = F i g u r e S E Q F i g u r e Figure 3 The transportation market
16 Sample Company LLC Sample Company LLC BUSINESS PLAN +1%. Though the gross rates are not very high, the positive dynamics indicate that the industry is in demand within the US. This statement is also proved by the statistics, concerning the number of enterprises that provide transportation services via trucks: The number of enterprises in the field of truckload has increased by more than 70 thousand (figure 5) with a CAGR of 4%. That means, that more and more companies are eager to operate in the field of truckload transportation. Hence, the industry can Figure 4 Size of the truckload market in the U.S. between 2018 and 2021 Figure 5 Number of enterprises in the truckload market in the U.S.
17 Sample Company LLC Sample Company LLC BUSINESS PLAN be treated as attractive for the new business establishment as the increasing number of entrepreneurs signalize the appropriate business environment. It is noticeable, that the number of enterprises grew beside the COVID-19 negative impact: there was a decline in 2020, but in 2021 the growth continued. The amount of cargo transported by trucks (figure 6) also grew steadily until the COVID-19 outbreak. The overall growth was 3% with a CAGR of +0,45%. The increase in transported goods indicates the rise in demand of the US citizens for truckload companies’ services Currently the world is gradually recovering after the peak of the pandemic. The transportation services industry, being the key part of any supply chain, plays a vital role in this recovery, thus we can assume, that the demand will return to the previous level shortly. Previously, we have observed that the number of enterprises grew in the field of truckload industry – the same trend can be seen in the employment (figure 7): overall, the number of employees grew up by 4% during the observed period with a CAGR of 0,21%. F i g u r e S E Q F i g u r e \ * A R A B I C 6 V o l u m e o f f r Figure 6 Volume of freight moved by trucks in the United States from 2014 to 2020
18 Sample Company LLC Sample Company LLC BUSINESS PLAN The growing unemployment caused by the COVID-19 crisis affected the truckload industry, but, again, we assume that the situation will improve shortly in the upcoming years as the industry is one of the inherent parts of the modern business. The revenue of the couriers and express delivery services industry, which is closely related to the company’s activity, (figure 8) has a CAGR of 3,2%. Figure 7 Employment in U.S. truck transportation industry from 2000 to 2020 Figure 8 Industry revenue of couriers and express delivery services
19 Sample Company LLC Sample Company LLC BUSINESS PLAN Revenue in 2021 in bln USD is equal to the numbers in 2019 which means that the sector has already recovered after the COVID-19 pandemic and is projected to grow annually. LTL services LTL business in North America is often considered to be highly concentrated with the top 10 players controlling most of the market share. Despite that, the number of enterprises, which provide LTL services, was constantly growing from 2018 to 2021 (figure 11). That means the market has a niche for new business and it Is quite attractive for newcomers F i g u r e S E Q F i g u r e \ * A R A B I C 8 T o t a l r e v e n u e o f c o F i g u r e S E Q Figure 9 Leading LTL carriers in North America based on revenue
20 Sample Company LLC Sample Company LLC BUSINESS PLAN On the same figure it can be seen, that the number of companies that provide Full truckload services is about four times more than companies that provide Less-thantruckload services. Thus, the Less-than-truckload market is significantly less competitive, making it easier to enter the market and develop a business. The graph below shows the total market size of the less-than-truckload industry in the United States. Figure 10 Number of enterprises in the truckload market in the U.S. Figure 11 Less-than-truckload market size in the U.S.
21 Sample Company LLC Sample Company LLC BUSINESS PLAN In 2021, it reached over 86 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. The only exception was 2020 when the pandemic began. Still, as was mentioned before, in 2021 the market size increased from bln USD to 86 bln USD and overpassed the 85 bln USD point that was reached in 2019, which means that financially the industry has recovered after the COVID-19. The statistics in figure 14 depict the primary types of services offered by trucking companies in North America in 2020. During the survey, 62% of respondents mentioned LTL services making them the fifth most popular category. As was mentioned before, the company specializes in less than truckload transportation, we can observe the Texas state statistics concerning this type of service (figure 14) F i g u r e S E Q F i g u r e \ * A R A B I C 1 3 S i z e o f t h e L T L m a r k Figure 12 Primary types of services offered by trucking companies in North America
22 Sample Company LLC Sample Company LLC BUSINESS PLAN The growth rates are higher than the US average, so Texas is one of the most convenient states to establish the business. The overall growth of revenue was 58% and a CAGR – of 3,9%, which is high enough. Market Drivers in 2022 Despite an increase in the total market revenue for trucking in 2021, the pandemic still brought about the bankruptcy of several enterprises due to the shortage of orders. The U.S. trucking has not yet fully recovered after that and there is still room for new companies to enter the market and start the trucking business. In addition, there are a number of new technologies developed for the industry. For examples, software programs that help streamline the operations, ‘smart’ technologies, which are incorporated to make trucks more efficient to use, and devices that keep track of the goods. The fact that the industry experiences technological improvements is a positive sign of long-term growth. While the pandemic has negatively impacted many people, Americans' personal savings rate is currently trending at more than four times the five-year average, Figure 13 Industry revenue of LTL in Texas
23 Sample Company LLC Sample Company LLC BUSINESS PLAN setting up perfect conditions for consumer spending to remain elevated throughout the whole of 2022. In 2021 American residents spent around $15.4 trillion on durable and nondurable goods and services. This is more than half a trillion less than last year. Americans realized 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 10,000 each year. Because of the high demand, driver compensation is correspondingly very high. The statistics show the results of a survey among US trucking companies in 2021 asking the industry representatives about the most significant challenges for them in the trucking market (Fig. 16). The data presented shows that only 9% of truckers identified competition as a problem. This means that the Company is entering a reasonably free market. During the survey, 85 percent of respondents mentioned driverrelated costs as one of the most significant challenges in the US trucking industry However, in 2020, due to the Coronavirus pandemic in America, unemployment rates increased significantly. In 2020, the US unemployment rate more than doubled from 2019 to 8.1%. F i g u r e S E Q F i g u r e \ * A R A B Figure 14 Greatest challenges for truckerts in the trucking market in the United States in 2021
24 Sample Company LLC Sample Company LLC BUSINESS PLAN Though in 2021 the situation in the labor market has slightly improved (the unemployment rate was 5,3%), we can still expect an increase in the number of drivers in the market, simplifying the Company hiring the drivers. Employment in the LTL industry itself is very active. The total wages paid to employees in this industry remained relatively stable during the pandemic and in 2021 it even increased by 1 bln USD. Figure 15 Unemployment rate in the USA
25 Sample Company LLC Sample Company LLC BUSINESS PLAN Figure 16 LTL market total wage payables in the U.S. Competition Our Company will compete in the market with the same companies which provide the same cargo transporting services. Over 656 thousand companies operating in the truck transportation industry (this figure has grown by 12% between 2018 and 2021), employing more than 1,4 million people in various roles. Competitive Edge Competition in the transportation market lies in the area of internal company performance. 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 logistics. He is capable to create a highlyefficiency logistics scheme that will allow the Company to outperform the competitors by short-time delivery. F i g u r e S E Q F i g u r e \ * A R A B I C 1 8 L T L m a
26 Sample Company LLC Sample Company LLC BUSINESS PLAN Sample Company LLC will establish a competitive edge by focusing on on-time deliveries. The Company's software, GPS tracking, online and phone information systems, and operations planning will be aimed at reaching 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. Another competitive advantage will be the quality of customer services. The company aims to provide the best services to help clients deal with all the problems, that may arise during the delivery process, as fast as possible. In addition to other trucking companies, Sample Company LLC will also compete with rail and air cargo transportation providers. However, for the distances it intends to travel, trucking is an advantage. Strategy & Implementation Summary Our Company has already started its operation and has been providing cargo transportation services since February 2022. The total startup expenses for business with X cargo vans are in Table 6: Table 6 Total start-up expenses Description Cost ($) Payment for Cargo Van #1 Payment for Cargo Van #2 Consulting services fee Office rent Parking rent Total: The Company will buy an additional cargo van every year. Currently, it has X operating trucks. The 1st truck was bought in XXX 2022, and the Xnd one - was in March 2022. Overall, the Company will have 6 cargo vans by the end of the forecasted period. The Company’s revenue will grow respectively. The graph below demonstrates the yearly number of cargo vans at the Company’s disposal:
27 Sample Company LLC Sample Company LLC BUSINESS PLAN For each new cargo van, the company will hire an additional driver. The yearly number of employed drivers is shown on the graph. Since drivers are paid a percentage of the company's revenue, increasing the number of trucks will increase the overall profitability of the business, as fixed costs will be spread over a greater number of trips. This strategy will result in a full-fledged business. F i g u r e S E Q F i g u r e \ * A R A B I C 1 9 N u m b e r o f c a r g o v a n s o w n Figure 17 Number of vans Figure 18 Number of drivers
28 Sample Company LLC Sample Company LLC BUSINESS PLAN Management Summary The management structure will be as follows: Applicant is the CEO. As the Principal Investor & CEO, Applicant will plan, direct and coordinate the operational activity of the company. He will hold a key role in developing the entity and business activity to achieve its growth targets. Specifically, Applicant will be responsible for the following: ● Direct and coordinate financial activity, increase efficiency of the company ● Direct and coordinate companies’ operational activity ● Monitor revenue and profits to develop and market additional offerings ● Analyze operations to evaluate company performance, potential cost reduction, policy change ● Directing and coordinating pricing/sales/provision of services ● Direct, plan and implement policies, objectives of the company to ensure continuing operations, to maximize returns on investments and increase the productivity of the business. ● Market the company’s business The CEO will also be responsible for the work coordination with the third-party dispatcher who will be out of the company structure. F i g u r e S E Q F i g u r e \ * A R A B I C 2 1 M a n a g e m e n t S t r u c t u r e
29 Sample Company LLC Sample Company LLC BUSINESS PLAN Financial Projections The following is a five-year revenue forecast. Direct costs include all costs which can be directly tied to revenue. Table 7 Revenue and COGS forecast, thousands USD 2022 2 023 2 024 2 025 2 026 Revenue Transportation Total Revenue Direct Cost of Revenue Total Direct Costs Gross Margin Gross Margin/Revenue Our Company plans to increase the number of trucks by X during the projected period. Due to the increase in the number of trucks, the Company's revenue will also grow accordingly. F i g u r e S E Q F i g u r e \ * A R A Figure 19 Annual revenue
30 Sample Company LLC Sample Company LLC BUSINESS PLAN The Company's personnel forecast is outlined below. Personnel wages indicate the average salary per position, and personnel costs are total wages for each job. Table 8 Personnel forecast 2022 2023 2024 2025 2026 Year-end personnel count CEO Driver Monthly personnel costs CEO, thousands USD Driver Personnel costs, thousands USD CEO Driver Total costs The Company intends to deploy its funding to maximize growth and profitability. The "bottom line" or profit (measured before and after interest, taxes, depreciation, and amortization) equals gross margin minus operating expenses. In the Profit and Loss table below, gross margin equals revenue minus direct costs. Table 9 Profit and Loss statement, thousands USD 2 022 2 023 2 024 2 025 2 026 Gross revenue COGS Salary and wages General costs Other expenditures Total costs Earnings before interest, taxes, depreciation, and amortization Earnings before interest and taxes Interest paid Profit before taxes Figure SEQ Figure \* ARABIC 17 Annual revenue
31 Sample Company LLC Sample Company LLC BUSINESS PLAN 2 022 2 023 2 024 2 025 2 026 Federal net income tax Federal self-employment tax State net income tax Payroll tax Net profit Profit accrual The chart below demonstrates when the Company is expected to become profitable. Break-even occurs when revenue equals expenses. According to the financials, month 2 will be the point at which break-even will occur. Figure 20 Break-even analysis The following depictions of the Company's projected cash flow show that the Company expects to maintain sufficient cash balances over this plan's five years. The "pro forma cash flow" table differs from the "pro forma profit and loss" (P&L) table. Pro forma cash flow is intended to represent the actual flow of cash in and out of the Company. In comparison, the revenue and expense projections on the P&L table include "noncash" items and exclude funding and investment illustration. F i g u r e S E Q F i g u r e \ * A R A B I C 2 3 B r e a k
32 Sample Company LLC Sample Company LLC BUSINESS PLAN Table 10 Cash flow statement, thousands USD 2 022 2 023 2 024 2 025 2 026 Cash at the beginning of the period Cash received from customers COGS Operating profit Salary and wages General costs Interest paid Taxes Cash flow from operating activities Land Intangible assets Building costs Purchase of equipment Other expenditures Cash flow from investing activities Proceeds from capital contributed Proceeds from loan Payments on loan Cash flow from financing activities Net cash flow CFADS Cash at the end of the period
33 Sample Company LLC Sample Company LLC BUSINESS PLAN The balance sheet below highlights the Company's projected assets, liabilities, and capital: Table 11 Balance statement, thousands USD 2 022 2 023 2 024 2 025 2 026 Assets Fixed assets PP&E Investments inprogress Current assets Accounts receivable Cash TOTAL ASSETS Equity and liabilities Capital stock Retained earnings Long-term debts Long-term debts Short-term debts Short-term debts Accounts payable Taxes payable TOTAL EQUITY AND CAPITAL
34 Sample Company LLC Sample Company LLC BUSINESS PLAN Conclusion Summarizing the business plan data and results: ● The industry of truck freight is growing, with a moderate CAGR of 3,12%. ● Unemployment in the US due to COVID-19 simplifies the drivers hiring ● The project's investment period is short, and the Company has already started operation activity since February 2022. ● Company owners invested $XXX,XXX and the Company will reach a breakeven point in the 2thmonth. The total Company accrual profit will be $X XXX XXX - big enough to make the investment idea attractive. Based on all the above, it can be concluded that financing the project is a productive investment with low risk.
Appendix: Year 1 Financials by Month Table 12 Cash Flow, thousands USD Month 1 2 3 4 5 6 7 8 9 10 11 12 Cash at the beginning of the period Cash received from customers COGS Operating profit Salary and wages General costs Interest paid Taxes Cash flow from operating activities Land Intangible assets Purchase of equipment Other expenditures Cash flow from investing activities Proceeds from capital contributed Cash flow from financing activities Net cash flow Cash at the end of the period
36 Table 13 Balance sheet, thousands USD Month 1 2 3 4 5 6 7 8 9 10 11 12 Assets Fixed assets PP&E Investments in-progress Current assets Accounts receivable Cash TOTAL ASSETS Equity and liabilities Capital stock Retained earnings Long-term debts Long-term debts Short-term debts Short-term debts Accounts payable Taxes payable TOTAL EQUITY AND CAPITAL
www.masterplans.ruRkJQdWJsaXNoZXIy MjcxODE=