Logistics business plan for starting your own business
Starting a logistics company is not an easy feat. If you are just starting out in the domain and don’t know the industry very well, it can be a little tricky to figure it out as it is not a domain that is limited to specific areas. It interacts with various domains and acts as a mediator between different companies and storage unit facilities. You may analyze various logistics business plans to gauge the domain you want to tap with your logistics company.
If you are unsure about how to write a business plan for a logistics company, you can hire business plan experts to write you one. Alternatively, you can use this business plan for transportation service used by Secure Shipments as a reference.
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Starting a company in the logistics domain can be heavy on both your pocket and your time. Therefore, we will offer some insights from business experts regarding regarding how to make a logistics business plan. Their extensive experience in development of strategic business plans allows them to guide you through the process of drafting a business plan for your own logistics company.
2.1 The Business
Secure Shipments will be a logistics company started in Dallas, Texas. The business has a business continuity plan for logistics company that provides services pertaining to the logistic management of different businesses with their unique operations.
2.2 Management of logistics business
Secure shipment’s business plan will allow for the efficient management of the whole company wo that it utilizes all of its resources in running an effective working system. The business plan developed through this guide will contain all the management details regarding different processes and departments within the business.
2.3 Customers of logistics business
Irrespective of whether you are following a roadside assistance business plan or thinking of starting a logistics business; you need a target audience. Secure Shipments will serve the following customer groups as its target market:
- Warehouse Operators
- Cooperate Organizations
Before starting a logistics company pdf, you may refer to this business plan for logistics company used by Secure Shipments.
2.4 Business Target
The business will aim to become the first option for customers when they need assiatcne with logistic services.
3.1 Company Ownership
Initially, th company will be financed by Trevor Scorr. Trevor got a diploma in Logistic Management about 2 years ago and afterwards, helped manage multiple logistic companies. His educational and professional experiences helped him create this logistic business plan.
3.2 Why is Secure Shipments being started
The most unique thing about starting a business in logistics domain is that you can be a professional with a big team and lots of resources or you can be an amateur just starting out, but you will have a chance to succeed in the market. Trevor used this flexible and welcoming atmosphere in the industry and came up with this business plan for logistics services.
3.3 How the logistics will be started
This logistics business plan sample highlights the steps taken by Secure Shipment to set up its operations:
Step1: Get driving experience
Logistics business is all about the skills. You can’t become successful with just vehicles. Global transport and local transport both require specific requirements, which Secure Shipments will meet after provision of training to the staff.
If you want to expand your business across the country like Secure Shipments, this logistics company business plan template can prove very useful.
Step2: Pick a Location
The right location is crucial for a business. Therefore, Secure Shipmetns will find a location near its target market and set that as its home base with parkings and main offices.
Step3: Research your competitors
You cannot succeed in the market if you don’t bring something new and improved. For this, you need to look into your competitors and understand their strategies. In this logistics business plan pdf, Secure Shipments will use the trends of current competitors to improve upon their marketing strategies.
Step4: Write a business plan
Before starting a business, you will need a set of goals and management rule with which to start the company. The best way to set those details is through a truck driving business plan which is what Secure Shipments is doing through this document.
Step5: Buy or lease a truck
The equipment required by a business depends on the nature of its services. Since logistics mainly deals transportation of products, Secure Shipments will buy 5 trucks and lease 10 more.
|Research and Development||$10,000|
|TOTAL START-UP EXPENSES||$273,300|
|Other Current Assets||$251,000|
|Start-up Expenses to Fund||$273,300|
|Start-up Assets to Fund||$893,500|
|TOTAL FUNDING REQUIRED||$1,166,800|
|Non-cash Assets from Start-up||$1,142,000|
|Cash Requirements from Start-up||$113,000|
|Additional Cash Raised||$50,000|
|Cash Balance on Starting Date||$35,000|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$61,140|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$1,166,800|
|Loss at Start-up (Start-up Expenses)||$93,860|
|TOTAL CAPITAL AND LIABILITIES||$1,340,000|
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Services of logistics business
Choosing a niche in your logistics company business plan can benefit you greatly as it will focus your efforts. It can either be related to Food & Beverages, Appliances, or Industrial & Manufacturing. As per this business plan logistics company sample, Secure Shipments will be providing the following services:
- Packaging of goods for transportation
Packaging is a process that involves preparation of goods and products for their safe and efficient travel from one location to another. Secure Shipment provides customized packaging as per the client’s requirement to transport it securely.
- Freight Consolidation
Secure Shipments will provide Freight Consolidation to its customers thus reducing the financial burden of arranging separate shipping for each shipment in a close by region. As per this logistics proposal template, Secure Shipment combines shipments, to reduce overall expenditures on the transport whenever possible.
- Trade documentation
Trade documentation compiled by Secure Shipment includes the value of the exported/imported goods, their quantities, detailed contents, delivery conditions, and transport costs. Since Secure Shipment will be expanding its operations in Canada, too, it is essential to complete the trade documentation per transaction.
- Logistics consultation
As per this transport business plan , Secure Shipments will provide the availability of a consultation team for its customers. The customers can contact this team whenever needed to modify business plans and figure out sales forecasts.
If you are having trouble understanding how to get into logistics business and what services to offer, you can use this logistics business plan pdf to get a head start. This document is also used as a logistics business proposal by Secure Shipments to gain potential investors.
Marketing Analysis of logistics business
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You must research the target market thoroughly before starting a logistics business. It will help you understand and analyze your competitors, untapped potential in the market, price trends and changes in customer requirements. You may go over this logistic business plan to gain an understanding of the current market trends and learn how to start a transport business. Analyzing the market will help you answer most of the questions related to how to start a logistics business.
Logistic industry has always been quite dynamic. From selecting the reliable drivers to work with, to building a trusted bond with the industries and customers, it’s quite challenging. Over the time, it has moved from a simple and narrowed transport service or storekeeping to a broader service that just not only deliver the product but also ensure quality at each level of the process. OGS capital would help you evaluate all prospects of logistic industry before you can start your logistic business plan.
The complex network of freight, cargo, and various transport services as in, shipping, courier, air freight etc. shapes a framework of logistic business. They exist to overcome physical distance between a supplier and an end user.
A market with the value of $4 Trillion globally is full of opportunities for the emerging entrepreneurs as the transport sector is growing exceptionally on a global scale. In the coming years, the network of logistic business niche will expand to emerging economies i.e. China, India, and other Asian countries. And with the incorporation of technology, they will be more efficient.
Quality is one among many factors that gives the logistic industry a competitive advantage; hence, a logistic business is always focused on improving the efficiency throughout the process keeping in view the needs of the customers.
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5.1 Market Trends
The logistics industry has a very big impact on the economy of the US as a whole as it involves over 6000 businesses that generate more than a billion dollars of revenue annually. This impact makes the industry a major business domain in the country and makes it a potential area for new business mongers to start their venture. Hence, it might be a good idea to starting a small transport business.
Globally, the progress of logistic business and relies heavily on the export between different countries. Trade between Asia, Europe, North America foster the growth of logistic business. The biggest challenge, however, is to meet the requirements of the customers with high customization. Providing a certain product or service at a certain time, with different requirements and instructions is a hassle. This is where the requirement of a flexible distribution process comes in, so that the challenging requirements can be dealt easily. For a logistic business to grow, it is highly important that it adapts to rapidly changing global trends.
Information technology is being utilized in the global complex supply chain processes for the ease of end consumers. The risk of delaying is being catered by ensuring the availability of alternative distribution plans. The logistic industry is leaning towards utilizing multi-channel strategies, which has made the competition even more intense. People owning the logistic business will have to make sure they keep innovating in their ways of providing services.
In addition to this, the nature of a supplier-customer relationship is changing significantly. Globalization has transformed it into more cooperative and interactive thereby removing any communication barrier that could exist among them.
5.2 Marketing Segmentation
Common characteristics of a market segment include interests, lifestyle, age, gender, etc. It is essential to identify them to determine your target market. In this logistics company business plan pdf, Secure Shipments specifies the following as its’ potential customers:
Business Plan for Investors
Retailers with multiple franchises require trucks to transport goods from one place to another. Secure Shipments signs contracts with retailers across the city and help transport its goods to their destination – regardless of their type and size.
5.2.2 Warehouse Operators
Companies with disintegrated supply chains sign contracts with logistic companies to transport their goods to the desired destination. As Secure Shipments offers customizable packaging and on-time delivery schedules, warehouse operators can use the business to easily transport their goods to the retailers.
Like warehouse operators, manufacturers need logistic facilities to transport goods to retailers in the market. If you are starting a small transport business, manufacturers are one of the best potential customers.
5.2.4 Corporate Organizations
Given the increasing number of logistical choices available to competing companies, organizations look for the cheapest and the most reliable options to transport their goods to the market as well as retailers. While focusing on starting a small transport business, Secure Shipments promises to offer flexible rates to cooperative organizations against their secure transport services.
|Potential Customers||Growth||Year 1||Year 2||Year 3||Year 4||Year 5||CAGR|
5.3 Business Target
- Sign contracts with 35% of the retailers in the city for transportation for their goods
- Purchase five new trucks within two years of business operations
- Hire and train new CDL drivers as the business expands
- Capture 33% of market share, concentrating on the wholesalers
5.4 Product Pricing
Secure shipments will provide its logistics services at a comparative rate to the industry. However, within this price range, it will offer multiple packages to its customers making it a good deal for them. You can follow a similar pattern for your business plan for logistics company.
Market analysis by Secure Shipments can help you learn how to set up logistics company.
Marketing Strategy of logistics business
Secure Shipments will develop and adopt a marketing strategy based on efficient service, customer satisfaction, internal values and goals. This strong foundation of values will help the company gain and retain a loyal customer base. While thinking about how to start your own logistics company, it is essential to study the market competitors and find a unique selling point to develop relevant sales strategies.
6.1 Competitive Analysis
- We use advanced, well-integrated source systems. We can synthesize truck, driver, weather, and route data in real-time.
- Secure Shipments can estimate customer requirements like freight demands along with price estimates to optimize the transportation on both our end and the customer’s end
- We offer flexible freight rates to our long-term clients
- We will provide the customers channels for constant communication to build trusting relationships
6.2 Sales Strategy
Since revenue is dependant on the sales of a company, sales strategies should be the main focus of logistics in business plan.
- Introuduce the business to the industry through introduction letters and an opening ceremony
- Provide different clients different packages depending on their budgets and needs
- Word of mouth, by requesting referrals
- Advertise the company through magazines and newspapers
This is your guide on how to start a small logistics company.
6.3 Sales Monthly
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6.4 Sales Yearly
6.5 Sales Forecast
|Unit Sales||Year 1||Year 2||Year 3|
|TOTAL UNIT SALES||4,650||4,929||5,225|
|Unit Prices||Year 1||Year 2||Year 3|
|Direct Unit Costs||Year 1||Year 2||Year 3|
|Direct Cost of Sales|
|Subtotal Direct Cost of Sales||$421,500.00||$491,469.00||$547,005.00|
6. 6 Advertising and publicity aspect
Our strategy experts at OGS Capital will help you build a strong advertising and publicity model for your logistic business. Gone are the days when advertising was just limited to products related startups. Having a solid publicity strategy is equally important for a logistic company as well. There are going to be many competitors with whom your venture has to deal with throughout the execution, so advertising will help you stand out as building a good image.
The effective medium for advertisement of your venture could be anything, depending upon how effectively you design it. Be it digital, print or TV, the advertisement must deliver the message of the company to the desired audience.
6. 7 Content and social media marketing
Digital is to any venture is what oxygen is to living in this era. If your venture lacks an online presence, it would be difficult for it to reach out to a wider number of people who have an online presence and who can prove to be your potential customers for it.
Having an effective content in the marketing guide is equally important for a logistics business as well. Both aspects of the logistics business i.e. B2B and B2C can be catered with maintaining a responsive online presence. Several brand awareness campaigns can be built online to help you in delivering the message of your venture.
The content is also very crucial to the presence of your logistics business online. It has to be crisp, clear and concise in order to help audiences understand your company’s message effectively. Content can prove to be a good source of adding a significant value to your venture. Creating a blog, social media pages, newsletters are all the aspects that come under the umbrella of content marketing of a company. If these mediums are producing easier to read and enriching content, it would become easier for your logistics business plan to reach out to the masses in a smart way.
Gaining leads and sales is the ultimate goal of online marketing platform of any venture. If the message will be clear and conveys what customers want to hear, it can drive remarkable results for your logistics business plan. Having an active online presence of your company is the key to it. The responsiveness of your company has to be timely and very apt. The concerns and the questions of your online audiences must be catered at the right time.
While there are several factors which are considered in branding, the logistic business on the other hand, has to be very selective about their branding strategies. Some logistic business just delivers stuff and nothing more than that, which is now a very traditional approach. If you want to be your customer’s first choice, you have to appear something more as just the entity. It could not be only about delivering things by your company.
Branding becomes even more selective when it comes to B2B marketing. You have to create a “feel good” kind of factor that enables the other to trust your service and make your company a first choice.
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SWOT Analysis of logistics business
SWOT Analysis in the beginning of any startup is performed to evaluate the strength, weakness, opportunity and threats. SWOT analysis helps in analyzing every factor and information which could help them make their place in the industry. It identifies both internal and external factors that could affect the existence of your firm in the industry.
OGS Capital has devised a sample SWOT analysis for this industry to help our potential entrepreneurs in grasping the weakness, strength, opportunities and threats of this particular niche. A clear picture of SWOT analysis of this industry would assist you in determining all the possible factors which can have an influence on your startup.
An efficient logistics partner can help ventures attain competitive advantage. The strength of the logistics business is based on its channel strategy, outsourcing strategy and customer service strategy. These are the building blocks which define the key activities of its network. Stocking, analyzing and storing also constitutes a major part of distribution network. If performed effectively, it could really prove to be a game changer for any logistics business in the industry.
The weaknesses that affect the most in logistics industry includes delay in delivery, lack of communication, manual systems, poor execution of operational processes. These are the factors which can have a negative influence over the performance of a logistics businesses. You have to make sure your stock is available and ready to deliver as soon as the order arrives.
The quality factor can prove to be very sensitive in such scenario. This could result in the biggest weakness of your logistics business and can bring down your potential to almost zero. In addition to this, you may have to face numerous challenges in the initial stage of setting up your startup in this particular niche, therefore, it is necessary to evaluate and craft solutions to the potential weaknesses which can occur at any point.
The logistics industry is full of opportunities for the people who want to establish a business that could generate revenue streams for them. Although these opportunities have to be utilized strategically. Globalization has changed the way with which distribution network works; the automated processes, use of technology, apps, exchange of data are the kind of opportunities on which logistics business is flourishing in this age of digitalization.
Changing market dynamics are posing great threat to the logistics industry at the moment. There exists a lot of uncertainty in almost every logistics business. The way innovations are happening at such a rapid pace can bring a lot of challenges for this niche. If you are getting into logistics industry, you better make adjustments to your logistics business model by making it more prone to adopting new changes. If businesses are not met with the new technological standards, they are most likely to be left behind. We, at OGS Capital, would make sure to devise your logistics business plan according to the disruptions which this industry may have to face in upcoming years.
In addition to this, a bigger factor which is being seen as threat to the logistics business is unavailability of educated drivers. The turnover rate of educated drivers is increasing with the passage of time and it is becoming difficult to coordinate with the kind of people who are not well aware about this business.
Automation is being an agent of transformation. Labor which is being used to ensure the quality of stored items is being replaced by the machinery, thereby depriving people from their jobs and not facilitating them with many employment opportunities.
PESTLE Analysis of logistics business
The economic perspective in the logistics business is evolving at a very rapid pace. The gap between demand and supply is being filled by logistics business. The growing population is exerting an immense pressure, making it difficult for a logistics business to meet the demand with economical products. In addition to that, the availability of raw materials is becoming difficult to manage in the times like these.
The market prices are also an important factor to consider for this logistics business plan. At times, it becomes difficult to consider options for logistics considering the peak pricing. The monopoly of the logisticians does not let manufacturer decide about opting for the economical option. This brings a lot of risks along which include operating risk, credit agreement, delivery contract, completion risk etc.
The changes in national and regional policies affect the manufacturing and distribution processes which eventually disturbs the logistics. Shippers have to continuously look for the ways through which they can trim the costs by utilizing lead time effectively. Following is a sample PESTLE analysis template of this industry which can enlighten you about its various aspects:
From the environmental perspective, the global warming and whole climate changing is making it difficult to save our natural resources, which ends up in further crisis regarding the unavailability of raw materials. Green logistics is grabbing much attention in the logistics domain of the business to promote low-carbon emission vehicles and minimal usage of energy.
Transport used in logistics industry is making a negative influence on the environment, hence, logistics businesses have to take care of the green aspects of the business as well. Being a business that deals majorly in transport and movement of vehicles, it is becoming an important aspect for the logistics industry to adopt such practices which saves the environment from any potential danger create by consumption of fuels. Customers appreciate such practices adopted by the companies, which, in turn, helps them build a sustainable competitive advantage in the longer run.
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Plenty of social factors affect logistics industry given that a logistics business can be operated within and outside of the country. Several factors are needed to be considered before operating warehouses in a region. Social responsiveness and ease of the people are to be kept in mind before operationalizing the distribution network.
If you are not aware of the legal aspects of the region in which you will be operating, there is a possible chance of many hurdles that you will be facing as a result of this. Foreign legal framework for logistics is mandatory prerequisite to follow. Things like currency issues, corrupt practices, money laundering, risk management, security breach, the compliance, accountability program, transaction activities, trade policies are some of the sample areas about which you must gather your knowledge beforehand in order to avoid any possible violation of law.
There are several laws i.e. labor, manpower, working conditions, health and safety etc. that must be known before taping your business into another region. Legal factors influence on the cost and profitability of any business and the same goes for starting a logistics company too. The law and order policies of the region are quite dynamic and keeps on changing frequently, hence knowing about the legal culture of the region for logistics businesses is one of many crucial factors for success.
The political factors have a great impact on the logistics industry. The developed economies are choosing to outsource their manufacturing operations in lesser developed countries to utilize cheap manpower. Hence, the operations of logistics are becoming more and more complex as a result of this outsourcing.
The manufactured products have to be delivered to final location for the purpose of selling through distribution partners. Therefore, every business has to coordinate with a logistics business plan. In such scenarios, the political forces don’t spend much on building enough infrastructure for shipping and transport which hinders the growth of the industry.
The recessionary time, in 2008, had a significant impact on the profitability of logistics industry. As the supply chain industry, has incorporated complex mechanisms, made transport extended and more expensive, the policies shaped by the authorities are not very dynamic observing such huge changes. This is making an impact on economic conditions on a macro level.
Owing to such drastic economic instabilities, it is becoming difficult for consumers to spend as much as they can, thereby reducing their spending power. If they would not be able to spend, it would not be possible for the government bodies and people in authorities to collect enough funds in the name of tax collection. This will limit the domain of government in shaping the dynamics of logistics industry as there won’t be excessive funds to spend on the progress.
This further results into numerous missed opportunities which could have been availed if the logistics and transport system was efficient enough and had enough capacity. This shows that economic stability depends a lot on effective transport and logistics system, which in turn, depends upon the infrastructure crafted on the grounds of public funded money.
The logistics industry is undergoing major transformation in this age of digital revolution. Placing sample orders, handling and supervising, keeping track of storage timings will become completely digitalized. Chances are, logistics industry will become autonomous in almost every aspect. The biggest example that we have seen in recent times is the way Amazon is utilizing Drone technology for efficient deliveries. Comparing with man travel, this technology is five times faster which is less time consuming and more productive.
Technologies like robotics, self-driving vehicles, wearable gadgets and internet of things (IoT) are really transforming the dynamics of the logistics industry in the recent times. The Internet of Things is becoming a new cool in the logistics domain. The way it connects every possible device to the internet is making it easier for the distributors and transporters to carry out their activities efficiently. Logistics industry is making extensive use of template of IoT to incorporate necessary sensors to keep a check on supply chain process as well as on the quality of packages.
They have enhanced the automation factor thereby increasing the operational efficiency of the industry. The tasks which take a human to complete in one hour in this industry can be easily performed by these gadgets in less than or almost 15 minutes. This is becoming an easier way for all logistics companies in the industry to gain competitive advantage.
Personnel plan of logistics business
Initially, the company will hire a small, close-knit team of full time employees to start the operations. Any further operations will be outsourced to contractors and freelancers depending on the situation. The categories of employees needed are mentioned in the logistic business plan. It will give you insights on how to open a logistic company within financial constraints.
9.1 Company Staff
Under this dump truck company business plan, these positions will be hired for:
- Logistics Manager
- Truck Drivers
- Business Developers
- Mechanical Engineers
Having a complete staff will help you address your questions regarding how to start a logistics company.
9.2 Average Salary of Employees
|Year 1||Year 2||Year 3|
Financial Plan of logistics business
The financial requirements in setting up a business are highlyl depending on the scope and the scale fo a business. In case of a large scale, you will need to acquire investors while for a small scale, you can get started by investing money yourself. Therefore, before figuring out how to set up a logistics company, you need to check your financial situation and business requirements.
Secure Shipments will be a family company that will owned and managed by Trevor’s family. Since they are wary of external partners, they will finance the company themselves. The finances required to start the company will be similar to a business plan for taxi service.
10.1 Important Assumptions
|Year 1||Year 2||Year 3|
|Current Interest Rate||8.12%||8.20%||8.26%|
|Long-term Interest Rate||8.40%||8.44%||8.47%|
10.2 Break-even Analysis
|Monthly Units Break-even||5340|
|Monthly Revenue Break-even||$132,500|
|Average Per-Unit Revenue||$231.00|
|Average Per-Unit Variable Cost||$0.62|
|Estimated Monthly Fixed Cost||$163,800|
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10.3 Projected Profit and Loss
|Pro Forma Profit And Loss|
|Year 1||Year 2||Year 3|
|Direct Cost of Sales||$421,500||$491,469||$547,005|
|TOTAL COST OF SALES||$421,500||$491,469||$547,005|
|Gross Margin %||68.90%||70.51%||73.31%|
|Sales and Marketing and Other Expenses||$145,000||$148,000||$156,000|
|Total Operating Expenses||$754,200||$815,950||$889,650|
|Profit Before Interest and Taxes||$179,800||$359,304||$612,747|
10.3.1 Profit Monthly
10.3.2 Profit Yearly
10.3.3 Gross Margin Monthly
10.3.4 Gross Margin Yearly
10.4 Projected Cash Flow
|Pro Forma Cash Flow|
|Cash Received||Year 1||Year 2||Year 3|
|Cash from Operations|
|Cash from Receivables||$22,000||$23,760||$25,661|
|SUBTOTAL CASH FROM OPERATIONS||$73,000||$79,570||$85,936|
|Additional Cash Received|
|Sales Tax, VAT, HST/GST Received||$0||$0||$0|
|New Current Borrowing||$0||$0||$0|
|New Other Liabilities (interest-free)||$0||$0||$0|
|New Long-term Liabilities||$0||$0||$0|
|Sales of Other Current Assets||$0||$0||$0|
|Sales of Long-term Assets||$0||$0||$0|
|New Investment Received||$0||$0||$0|
|SUBTOTAL CASH RECEIVED||$74,000||$79,000||$85,000|
|Expenditures||Year 1||Year 2||Year 3|
|Expenditures from Operations|
|SUBTOTAL SPENT ON OPERATIONS||$69,000||$70,000||$76,000|
|Additional Cash Spent|
|Sales Tax, VAT, HST/GST Paid Out||$0||$0||$0|
|Principal Repayment of Current Borrowing||$0||$0||$0|
|Other Liabilities Principal Repayment||$0||$0||$0|
|Long-term Liabilities Principal Repayment||$0||$0||$0|
|Purchase Other Current Assets||$0||$0||$0|
|Purchase Long-term Assets||$0||$0||$0|
|SUBTOTAL CASH SPENT||$69,000||$74,520||$80,482|
|Net Cash Flow||$21,000||$23,000||$25,000|
10.6 Projected Balance Sheet
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$1,000||$1,000||$1,000|
|TOTAL CURRENT ASSETS||$282,000||$315,840||$355,004|
|TOTAL LONG-TERM ASSETS||$24,400||$27,328||$30,744|
|Liabilities and Capital||Year 4||Year 5||Year 6|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$19,000||$21,280||$23,919|
|TOTAL LIABILITIES AND CAPITAL||$300,000||$329,280||$370,440|
10.7 Business Ratios
|Year 1||Year 2||Year 3||INDUSTRY PROFILE|
|Percent of Total Assets|
|Other Current Assets||2.11%||2.34%||2.59%||2.40%|
|Total Current Assets||149.80%||151.00%||152.00%||158.00%|
|Percent of Sales|
|Selling, General & Administrative Expenses||93.56%||96.09%||98.78%||97.80%|
|Profit Before Interest and Taxes||41.50%||42.62%||43.81%||33.90%|
|Total Debt to Total Assets||0.18%||0.18%||0.17%||0.40%|
|Pre-tax Return on Net Worth||74.08%||74.89%||75.00%||75.00%|
|Pre-tax Return on Assets||96.30%||101.12%||106.17%||111.30%|
|Additional Ratios||Year 1||Year 2||Year 3|
|Net Profit Margin||33.56%||34.60%||35.67%||N.A.|
|Return on Equity||55.80%||57.53%||59.31%||N.A.|
|Accounts Receivable Turnover||7.7||7.8||7.8||N.A.|
|Accounts Payable Turnover||15.6||16||16.3||N.A.|
|Total Asset Turnover||2.5||2.5||2.6||N.A.|
|Debt to Net Worth||-0.04||-0.03||-0.04||N.A.|
|Current Liab. to Liab.||1||1||1||N.A.|
|Net Working Capital||$244,000||$257,664||$272,093||N.A.|
|Assets to Sales||0.85||0.87||0.89||N.A.|
|Current Debt/Total Assets||1%||0%||0%||N.A.|
Important factors for success
11.1 Efficient communication between transporters, clients and bases
Like any other business, starting a logistics business plan takes a lot of effort in the beginning. The main thing is to have effective communication among transporters, clients and bases. They are the key stakeholders in any kind of logistics business. Having a proper template for this sort of communication can be useful. Unless they are trained to coordinate, cooperate and integrate with each other, it would be difficult to kick start a logistics business.
11.2 Robust and quality oriented delivery schedules
Providing quality oriented services is quite mandatory to any logistics business. In fact, logistics business thrives on quality based services which none of their competitors can match. Providing timely delivery to the customers will assure their confidence in the services and on the other hands, the manufacturer will rely more on the services, eventually changing into their long-term contractors.
11.3 Having good relations with drivers/employees handling operations
Just like any other business, the manpower plays an important role here. It is important to keep your drivers and other employees happy, so their potential can be fully utilized for the services. They must be kept motivated and should be encouraged frequently so they can feel honored to be a part of this business. It is not always about the money or extrinsic factors, you need to focus on the intrinsic factors as well. Unless they are intrinsically motivated, they will find no sense of purpose in what they are doing and it would be all meaningless for them. This will eventually turn into lack of productivity, thereby affecting the progress of your logistics business plan.
11.4 Suggesting the right distribution strategy to your customers or end users
For any service to be delivered in logistics business, it is important to suggest an apt distribution strategy to your customers as well as manufacturers. A template of distribution strategy is necessary to be crafted. Customers will only be interested in getting their products or services timely delivered with good quality, whereas your manufacturers will be interested in delivering value oriented services to their end users. Hence, it is your job to play an effective mediator. As a logistics partner, this puts you in a very tricky and sensitive position. Therefore, you have to provide an effective and efficient distribution strategy to your customers as well as manufacturers.
11.5 Making sure the convenience
The very basic idea behind any logistics business is to provide as much as convenience to the both parties; i.e. customers and manufacturers. You have to make sure your distribution is convenient at the both ends, even if that means you have to go through all the hassle. Timely delivery, ensuring quality and efficient services would help you achieve the aspect of convenience. The success of the logistics business lies in considering these aspects.
11.6 Looking after the cost aspects of logistics business
The cost aspect of logistics business plan must not be neglected at any case. After all, you are in the business for earning capital as well. You need to go through your logistics business plans and templates over and over again to evaluate where can you minimize you costs without having to compromise on the quality of your services.
Ever since the globalization and technology has taken every aspect of the business by storm, the need for efficient services has grown manifold. Therefore, logistics businesses have to cater to the new trends in their global strategy. The important factors such as demand forecasting, transport management, capacity utilization of warehouse, loading rates etc. should be updated as the dynamics of the industry changes. Our team at OGS Capital will assist you with making the best of your available resources by incorporating foreign technology oriented practices, integrated logistics management systems and policies which can give your logistics company a competitive advantage in the market.
1. How do you write a logistics business plan?
While writing a business plan for a logistics company, you need to take note of the following:
- Have Reliable and Good Suppliers.
- Optimize Inventory Management.
- Integrate the Company Divisions.
- Meet Deadlines and Keep your Word.
2. What is logistics in business plan?
Logistics business all about delivery of goods from the place of manufacturing to the place of use or selling. A logistic business plan pdf includes all details relevant to a logistics business including equipments and contract agreements.
3. Is logistic business profitable?
Starting a business in the logistics domain can be profitbale provided you have a strong base like the logistics business plan sample pdf shown here.
4. What are the 7 steps of a business plan?
A business plan addresses concerns regarding how to start logistics business. The 7 steps include:
- Executive summary
- Company description.
- Marketing analysis.
- Company organization.
- Products or services provided.
- Financial outlook.
Illustrative business plan samples
OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.