Business Plan- 3PL Company in USA

Executive Summary

The business is currently in its infancy.  At this point in time, License and other required permits are being actively sought to start the proprietary nature of the ABC Ltd. program and brand. It is intended that the business will remain small in the area of human resources and grow only as needed to support the needs of users.  That said it is expected to give the nature of the business exponential growth is likely over the next 3 years as licensure is secured as needed and uptake in both the consumer and business communities gains tractions.  It is also anticipated that, initially, there may be resistance by Governing body of USA freight management (state and federal) until appropriate documentation can be produced to support the contention of ABC Ltd. that this Freight transfer process is effective, secure, desirable to the consumer and, above all, profitable for their bottom lines.

Marketing will be a large consumer of capital, especially at launch and for the foreseeable future due to the nature and 'newness' of the concept. It will be necessary to educate consumers of all types as to the nature and veracity of this concept as a necessary tool for their lives in order to begin to build the customer base necessary to support this undertaking. Further, as it is the intention of ABC Ltd. to make this national, we will begin with 1 identified states in first year (Florida), reaching as many potential users as possible within this geographic and building significant membership prior to expanding to other regions. It is anticipated that we will use year one as a pilot program to best understand client needs and concerns, alteration our marketing efforts as necessary as we go.

Mission

The ABC Ltd’s mission is to provide the customer with the most satisfying shipping experience that they have ever experienced. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers.

 Company Summary

ABC Ltd. is a freight brokerage that specializes in third party logistics solutions. Our team of Freight Brokers will be dedicated to delivering businesses and individuals the best service experience possible, while reducing their freight costs and offering the most efficient technology tools available in the logistics industry. We will thrive on customer satisfaction, and guarantee personalized attention to each of our customers. We will approach each job with a sense of responsibility; caring for the safety of freight, adherence to schedules and the urgency of each freight load. Our versatile and proactive solutions will allow customers the peace of mind needed to effectively focus on running their business.

Start-up Summary

ABC Ltd. start-up costs include all the equipment needed for an office. Additionally, there will be legal fees, marketing fees, accounting fees, trade association dues, and deposit for the lease.

The largest expense for the office is a computer system. The minimum requirements for this we need a computer, printer, and CD-RW, Microsoft Office, and an accounting suite. The office will also require an internet connection, two land-line phones, fax machine, copier machine, and some office furniture.  The legal fees are for corporate formation, and the generation and review of contracts. The marketing fees are the costs associated with advertisements in industry journals, brochures, and website visibility generation. The accounting fees are for the services necessary for the formation of the business, while the majority of the accounting after startup will be done in-house with an accounting suite on the computer.

Start-up Investment	Cost
Business Computer & VoIP phone	$2,000
Furniture	$5,000
Equipment	$10,000
Licenses	$750
FMCSA Bond	$75,000
Website building exp.	$2,000
Other exp.	$500
TOTAL PROJECT COST	$95,250

Services

ABC Ltd. will provide a brokerage service to link manufacturers or suppliers of any kind of goods and their consumer companies. Freight brokers are basically the "middle man" between a shipper and trucking company, also referred to as "third party transportation providers." ABC Ltd. will work with companies to find a safe, economical way of transporting. ABC Ltd. basically is a link between two companies

1.    Manufacturer or supplier of any goods

2.    User of any goods supplied

Industry Analysis Summary

Domestic Mode of Exports and Imports by Tonnage and Value: 2007  and 2040
	Millions of Tons		Billions of 2007 Dollars
	2007	2040	2007	2040
Total	2,027	5,426	3,193	12,134

Total U.S. Imports via FLORIDA

Description	2010 Value	2011 Value	2012 Value	2013 Value	2010 % Share	2011 % Share	2012 % Share	2013 % Share	% Change, 2012 - 2013
Total FLORIDA Imports and % Share of U.S. Total	56,271	65,340	71,216	72,119	2.9	3.0	3.1	3.2	1.3
Total, Top 25 Commodities and % Share of State Total	16,790	22,676	29,800	29,275	29.8	34.7	41.8	40.6	-1.8

Total U.S. Exports (Origin of Movement) via FLORIDA

Description	2010 Value	2011 Value	2012 Value	2013 Value	2010 % Share	2011 % Share	2012 % Share	2013 % Share	% Change, 2012 - 2013
Total FLORIDA Exports and % Share of U.S. Total	55,399	64,929	66,202	60,461	4.3	4.4	4.3	3.8	-8.7
Total, Top 25 Commodities and % Share of State Total	18,127	28,318	29,077	25,720	32.7	43.6	43.9	42.5	-11.5

Strategy and Implementation Summary

ABC Ltd. will be going after the shipping industry in South Florida. This is a reasonable target, due to ABC Ltd’s industry knowledge. ABC Ltd. will be bringing customers aboard through the use of a website, advertisements in industry journals. ABC Ltd. will turn these leads into customers through our specialized knowledge which translates to superior service offerings.

SWOT Analysis

Strength

1.     Concept

The time is right for this concept. We are entering into the market when it is growing and it need to be flourish. We have all the opportunity to grow with the market. We have seen a down trend in previous year but now it is adopting upward trend.

2.     Reach

Florida play a vital role in USA’s economy as most of the export and import been done from its various ports. It has global connectivity.

3.     Cost Efficiency

Although the cost of establishment has been relatively high, now that the market opportunity exists, implementation will be relatively inexpensive. Corporate growth will be covered on a financial level by the operation of the system and Fees (Brokerage) paid by businesses.

From both a consumer and business standpoint, cost efficiency to generate any financial transaction will be cost-free.

4.     Superb cooperation among operating units

5.     Credit soundness 

6.     Strong significant accounting policies

7.     Price and quality of service

8.     Sophisticated and efficient procedures for the management of logistics supply chains 

9.     Marketing reach and efforts

Weaknesses

1.     Lack of funding

Starts up enterprises are always to some extent at risk financially unless they have significant financial backing from a strong external organization. Mr XXXXX has, to date, funded this undertaking privately which has placed a personal strain upon him.  Financing either from revenues (best case), or through funding instruments such as loans, grants or venture investment will be necessary to ensure continuing stability of the budget.

2.     Size

Currently, Fright brokers of America is poised for extensive growth both internally and externally.  Human resources, to date, have been kept to the barest minimum in an effort to hold down costs, but will be necessary as the company ramps up to develop market share.

3.     Instability of customers and service providers

4. Unable to draw meaningful conclusions as to each geographic areas over-all company contribution
5. Non-predictability of shortfall in Annually revenues 
6. Accounts receivable collection
7. Increased overhead expenses 
8. Increased facilities costs
9. Higher business taxes
10. Legal and related expenses
11. Cash flow fluctuates as a result of seasonality
12. Excess of customer billings over customer collections
13. Inability to predict supplier stability
14. Erosion in the company’s margins
15. Sensitive to economic cycles
16. Quick inventory rises

Opportunities

1.     Mobility

Our society has become one that expects nothing less than immediate gratification in all things and this includes their ability to manipulate their financial transactions whether for business or personal use which creates an environment rich for Fright brokers of America's introduction to a hungry market.

2.     Brand Awareness

Currently, Fright brokers of America is a relatively unknown brand. Strong marketing is being designed to support the name as a fright industry necessity over the coming months

3.     Vast market

Currently we are focusing in fright flow from and to south Florida only but in upcoming year we will have our branches or franchises in nearby states. It will increase our expense and cost but also it will increase our revenue and provide us a great connectivity.

4.     Negotiating favorable buy rates

5. Offering lower sell rates 
6. Growth and diversification of the Company’s international network and service offerings
7. Aggressive marketing 
8. Creation of unlimited advancement opportunities for employees
9. Current cash position and operating cash flows will be sufficient to meet its capital and liquidity requirements 

Threats

1.     Competitor Response

There is already significant competition in the Fright transfer business, some of them have good brand image and has good customer profile. There are many newly emerging firms, which are also doing the same as we. These organizations are at varying stages of readiness and services are, while generally considered close enough to make them direct competitors for market share, although not an exact match.  The most notably unique part of Fright brokers of America’s offering is the broking service fees and charges, both at the business and consumer ends of any transaction.  

2.     Political conditions in the United States

3. Taxation
4. Governmental policies concerning International trade
5. Rising costs in general
6. Political unrest 
7. Continued pricing and terms pressure 
8. Increasingly selective in which carriers to utilize
9. Operating results have been subject to a seasonal trend 
10. Weather patterns
11. Anti-competition allegations
12. Salaries and related costs 

Marketing Strategy

The Company intends to use a multitude of marketing strategies to promote and expand the freight brokerage and logistics consulting businesses operations. The Company will maintain its listing in the Yellow pages, create marketing campaigns within local newspapers, Industry magazines and promote the business through word of mouth advertising. The business actively advertises its affordable transportation and delivery services. Mr. XXXXX intends to maintain a website that allows customers to contact Management directly over email for more information regarding the Company’s freight brokerage services and pricing quotes. As the Company expands, the business will upgrade the website to include higher levels of functionality and support.  Additionally, Management intends to continually develop a number of referral and contractual relationships within among retailers, distribution companies, and moving businesses. Since these businesses regularly require trucking/tracking services, Management sees a significant opportunity to partner with these firms.

It is important for marketing strategy to develop an attractive image for ABC Ltd.

·         Initially for first year of operation, we will use online marketing and print media (Trade magazine) to spread the word over internet. Search Engine Optimization and social media marketing will let our users hear our presence online. Telemarketing agents will further reach to merchants in target area to announce how ABC Ltd. can help them. With tight budget for marketing, we will outsource our marketing activities to specialized companies in developing nations like Sri Lanka, India or Manila.

·         In second year of operation we will use our fund to invest more in advertising as we our stepping in 3 more states and we need fund, for funding we will raise our fund from external investor or from bank loan. We will be using this fund to print media magazines and new paper, Radio advertising. Contract with specialized advertising and public relation firms located in USA will guide us to utilize our resources efficiently.

·         With the beginning of third year of our existence, we plan to reach out for additional 6 states. We plan to allocate $0.18 million concentrating heavily on all penetrated 10 states.

·         For the fourth year, we will introduce ABC Ltd. to additional 6 states, announcing our existence to 16 US states. To cover this large audience distributed to such large geographies, we plan to increase our marketing spending to $0.288 million, which will be 14.2% of revenue earned for the year.

·         On our fifth year of existence, we will introduce ABC Ltd. to additional 6 states, we will surge our marketing spending to $0.396 million to cover all 22 states.

Target Market Segment Strategy

By focusing in Fright broking industry, ABC Ltd. will be able to offer superior service. To serve our client in a better way we require expertise and better connection with trucking companies. ABC Ltd. will form intimate relationships with the unique carriers because this relationship will provide ABC Ltd. with special insight, which will allow ABC Ltd. to meet any need a customer might have.

Florida is main junction to export import, as per the above research it’s a growing market. Whether it is an international trade or domestic trade Florida supply goods to everywhere.

Currently our main focus will be domestic transport and will move goods to every part of Florida itself. Once we are well known to the market we will move to next step that is to transport goods to all over the USA and nearby country i.e. Canada and Mexico.

In the freight broker market, there are general brokers that offer a wide range of services. There are a few companies that specialize. In 2002 there was 487thousands of ton goods travelled by trucks and it is expected that this figure will change and will reach to 928 thousands in 2035. We have a great competition but market growth indicate that we will have opportunity to grow.

ABC Ltd. will be marketing our business through several different outlets. The first is the Internet. A lot of the industry has moved to the Web as means for communication regarding freight quotes. ABC Ltd. will be developing a website where a customer can go to find out an estimate for freight rates. The website would key for finding the requisite information like weight, pick up and destination, and ABC Ltd. would work with our carriers to find them the most safe and economical solution.

ABC Ltd. will also be running advertisements in industry trade journals. The ads in the trade journals will provide visibility for ABC Ltd. to the manufacturers and buyers.

·         Take Advantage of Smartphones

·         Give Freight Management Software a Try

·         Be Location Aware

·         Yellow Pages and Classifieds

·         Distribute Fliers

·         Leverage your Network

·         Google rankings

·         Direct Mail

Advertising Strategy

•         Advertise on the radio.

•         Advertise in the Yellow Pages.

•         Advertise on a billboard.

•         Use stickers or magnets to advertise on your car.

•         Take out an ad in your local newspaper.

•         Advertise on a local cable TV station.

•         Advertise on Facebook.

•         Advertise on LinkedIn.

•         Buy ad space on a relevant website.

•         Use a sidewalk sign to promote your specials.

Internet Marketing

·         Email Marketing

·         Relationship Building

    Sales Strategy

		Sales Forecast
Year-1		2015
		Month- 1	Month- 2	Month- 3	Month- 4	Month- 5	Month- 6	Month- 7	Month- 8	Month- 9	Month- 10	Month- 11	Month- 12
		3%	4%	5%	6%	7%	7%	9%	9%	11%	11%	13%	15%
Truck Brokerage
	Florida	3,672.	4,896	6,120	7,344	8,568.	8,568.	11,016.	11,016.	13,464.	13,464.	15,912.	18,360.
	Other
		$3,672	$4,896	$6,120	$7,344	$8,568	$8,568	$11,016	$11,016	$13,464	$13,464	$15,912	$18,360
Year-2		2016
		Month- 1	Month- 2	Month- 3	Month- 4	Month- 5	Month- 6	Month- 7	Month- 8	Month- 9	Month- 10	Month- 11	Month- 12
Truck Brokerage
	Florida	11066	11066	11066	11066	11066	11066	11066	11066	11066	11066	11066	11066
	Other	30600	30600	30600	30600	30600	30600	30600	30600	30600	30600	30600	30600
	3states
		$41,666	$41,666	$41,666	$41,666	$41,666	$41,666	$41,666	$41,666	$41,666	$41,666	$41,666	$41,666
Year-3		2017
		Month- 1	Month- 2	Month- 3	Month- 4	Month- 5	Month- 6	Month- 7	Month- 8	Month- 9	Month- 10	Month- 11	Month- 12
Truck Brokerage
	Florida	12005	12005	12005	12005	12005	12005	12005	12005	12005	12005	12005	12005
	Other	94398	94398	94398	94398	94398	94398	94398	94398	94398	94398	94398	94398
	6state
		106,403	$106,403	106,403	$106,403	$106,403	$106,403	$106,403	$106,403	$106,403	$106,403	$106,403	$106,403
Year-4		2018
		Month- 1	Month- 2	Month- 3	Month- 4	Month- 5	Month- 6	Month- 7	Month- 8	Month- 9	Month- 10	Month- 11	Month- 12
Truck Brokerage
	Florida	13025	13025	13025	13025	13025	13025	13025	13025	13025	13025	13025	13025
	Other	163612	163612	163612	163612	163612	163612	163612	163612	163612	163612	163612	163612
	6state
		176,637	176,637	176,637	176,637	176,637	176,637	176,637	176,637	176,637	176,637	176,637	176,637
Year-5		2019
		Month- 1	Month- 2	Month- 3	Month- 4	Month- 5	Month- 6	Month- 7	Month- 8	Month- 9	Month- 10	Month- 11	Month- 12
Truck Brokerage
	Florida	14131	14131	14131	14131	14131	14131	14131	14131	14131	14131	14131	14131
	Other	238703	238703	238703	238703	238703	238703	238703	238703	238703	238703	238703	238703
	6state
		252,834	$252,834	252,834	$252,834	252,834	$252,834	$252,834	$252,834	$252,834	$252,834	$252,834	$252,834

Sales Monthly

Sales by Year

Milestones

ABC Ltd. has a big year forthcoming. In order to achieve the sales and marketing goals that have been outlined in this business plan, the company has deadlines to meet and ideas to implement. Some of these are outlined below:

	2015	2016	2017	2018	2019
Total load cost	680,000	2,777,732	7,093,561	11,775,804	16,855,570

To generate enough revenue to suffice Marketing and Sales budgets, we are determined to achieve above figures by the end of each respective years.

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