Logistics business plan for starting your own business
Starting a logistics company can be a bit tricky if you are new to the logistics domain and don’t know the industry’s trends. Logistics is a kind of business that serves as the unit that stores and delivers products to other companies. The scope of logistics is quite broad, and it is not just limited to the boundaries of a region. 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.
Starting a logistics business is undoubtedly going to be an expensive and time-consuming investment for you. Therefore, you must enter this domain after preparation.
Our business plan experts will answer your questions regarding how to make a logistics business plan. With years of experience in writing strategic business plans, they will be crafting an economically efficient and revenue-oriented idea for helping you build your own company.
2.1 The Business
Secure Shipments is a registered and licensed Freight Packaging & Logistics Services Company based in Dallas, Texas. It has a business continuity plan for logistics company that enlists services such as packing goods for transportation, crating goods for transport, wrapping goods for transportation, freight consolidation, trade document preparation, storing goods before and after freight, physical distribution consulting, and logistics consulting.
2.2 Management of logistics business
Secure Shipment’s business plan management system includes inbound and outbound transportation management, warehouse management, order processing, inventory control, supply and demand forecasting, and management of third-party logistics service providers.
In this sample, we will include the list of staff that will be hired to assist with all these processes.
2.3 Customers of logistics business
Irrespective of whether you are following a roadside assistance business plan or thinking of having a logistics business; you need to know your target audience. Secure Shipments will serve the following customer groups as its target market:
- Warehouse Operators
- Corporate Organizations
Before starting a logistics company pdf on your own, you may refer to this business plan for logistics company used by Secure Shipments.
2.4 Business Target
Our target is to become one of the preferred choices of individuals and organizations when it comes to the demand for freight packaging and logistics services in the U.S and Canada.
3.1 Company Ownership
Trevor Scott will fully finance the company. Trevor has a diploma in Transport and Logistics Management and over ten years of hands-on experience in the logistics services industry. His educational and professional experiences helped him create this logistic business plan.
3.2 Why is Secure Shipments being started
Trevor wanted to start a business in which he could earn profit by tapping on the expertise he already possess. He found that the logistics business is an industry that is open for both big-time investors and aspiring entrepreneurs who may want to start from a shared office space. Trevor wanted to use the friendly industrial environment and came up with this business plan for logistics services to enter the venture.
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 the Licenses
This type of business needs the right skills and to show the people that you possess rightful knowledge, you need to have written proof. Acquire all the licenses by meeting the registration criteria of your area.
If you plan to expand your business across the boards like Secure Shipments, this logistics company business plan template can prove very useful.
Step2: Pick a Location
Secure Shipments will be based near the potential customers and commercial area. The area for business would have enough space to park the trucks.
Step3: Research your competitors
Investigate what other service providers are doing. That will help you understand what customers expect and which of the expectations are not still being met. In this way, your business can get an edge. In this logistics business plan pdf, Secure Shipments took note of the current market trends and the existing competitors.
Step4: Write a business plan
Before entering the market, you must write a business plan as it provides you with forecasts for the next five years. A truck driving business plan will help you set objectives and set strategies to meet those goals.
Step5: Buy or lease a truck
As is the case with vehicles, you have the option to either purchase or lease equipment. Either way, you must first decide what type of freight you plan to carry. Do you plan on only running day trips, or do you want to have a sleeper cabin? Will your first trailer be a van, a refrigerated trailer, or a flatbed trailer? All these things should be decided before you launch your startup.
|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|
Services of logistics business
You should choose a niche in your logistics company business plan so that you can plan all aspects related to it. 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 coordinated system of preparing goods for safe, secure, efficient, and adequate transportation. Secure Shipment provides customized packaging as per the client’s requirement to transport it securely.
- Freight Consolidation
Freight consolidation combines multiple shipments into a single shipping container. As per this logistics proposal template, Secure Shipment will adopt this strategy to provide the service.
- 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 Shipment’s team of logistics consultants will usually be contacted when a customer needs to change their logistics arrangements to facilitate the delivery of their latest business plans or sales forecasts.
If you are confused about how to get into a logistics business and what services to offer, you can download this logistics business plan pdf to get a head start. This logistics business proposal can also be used to get potential investors.
Marketing Analysis of logistics business
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You must understand the market thoroughly before starting a logistics business. It will help you know the level of competition, potential untapped markets, pricing trends, and changing consumer preferences. You may go through this logistic business plan to get an overview of the current market trends and understand how to start a transport business. Understanding the market will help you answer most of the questions related to how to start a logistics business.
5.1 Market Trends
The Logistics Services Industry is very thriving in most countries worldwide. Reportedly, it generates over a billion annually from more than 6000 logistics services companies scattered all around the USA. Hence, keeping in view these trends, you must not worry about the scope if you are starting a small transport business.
5.2 Marketing Segmentation
Identifying potential customer groups helps you plan for meeting their expectations. As per this logistics company business plan pdf, Secure Shipments specifies the following groups as its target customers:
Business Plan for Investors
Retailers with multiple franchises require trucks to transport goods from one place to another. Secure Shipments will sign contracts with retailers across the city and help transport goods to their destination.
5.2.2 Warehouse Operators
Companies with disintegrated supply chains are expected to sign contracts with logistic companies to transport their goods to the desired destination. Warehouse Operators will be transporting goods and services to the retailers through Secure Shipments. To facilitate them, we plan on offering customized packaging and on-time deliveries.
Like warehouse operators, manufacturers need logistic facilities to transport their goods to retailers in the market. If you are starting a small transport business, manufacturers are the most promising target market.
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 or the raw materials from the suppliers to themselves. While focusing on starting a small transport business, Secure Shipments promises to offer flexible rates to organizations along with 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.
- Maintain a CSAT score above 90.
- 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 ensure that it leverages on price to win over customers; our prices will be affordable and negotiable. You may use the same pricing strategy if your business plan for logistics company is identical to Secure Shipments.
Market analysis by Secure Shipments can help you understand how to set up a logistics company.
Marketing Strategy of logistics business
The marketing strategy adopted by Secure Shipments will be driven basically by professionalism, excellent customer service, honesty, and quality service delivery. We will ensure that we build a loyal customer base. While thinking about how to start your own logistics company, it is essential to study the existing competition in the market, come up with a unique selling point and have relevant sales strategies.
6.1 Competitive Analysis
- We use an advanced, well-integrated system to manage the route data in real time.
- Secure Shipments will use innovative ways to optimize the operations.
- We offer flexible freight rates to our long-term clients.
- Our location is one of our competitive edges.
6.2 Sales Strategy
Since sales of the service generate revenue, sales strategies should be the prime focus of logistics in the business plan.
- Introduce our business by sending introductory letters to stakeholders in the construction industry, manufacturing industry, oil and gas industry, and timber merchants.
- Create different packages for different categories of clients to work within their budgets.
- Request referrals.
- Advertise our business in magazines and newspapers.
The monthly and yearly expected sales are given below in this guide on how to start a small logistics company.
6.3 Sales Monthly
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|
Personnel plan of logistics business
We intend to start the business with a handful of full-time employees. Adequate provision and competitive packages have been prepared for all our employees. Costs attached with salaries and appraisals are mentioned in this logistic business plan. It will give you an idea of the average costs of human resources and insights on how to open a logistic company.
7.1 Company Staff
Under this dump truck company business plan, these positions will be hired for:
- 1 Manager
- 1 Logistics Manager
- 5 Truck Drivers
- 4 Business Developers
- 6 Technical Assistants
Read this business plan thoroughly to address your questions regarding how to start a logistics company.
7.2 Average Salary of Employees
|Year 1||Year 2||Year 3|
Financial Plan of logistics business
In setting up any business, the amount or cost will depend on the scale of your business. If you intend to go big by renting a place, you will need a good amount of capital as you would need to ensure that your employees are taken care of. The costs for making the facility conducive enough for workers to be creative and productive are also going to be high. Before figuring out how to set up a logistics company, you need to check the availability of your funds.
Secure Shipments’ logistics business plan reveals that the business is solely owned and financed by Trevor and his immediate family members. The finances required to set up this business will be similar to a business plan for taxi service that is started on a large scale.
8.1 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%|
8.2 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|
8.3 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|
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 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|
8.5 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|
8.6 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.|
- 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.
- What is logistics in the business plan?
Logistics is about delivering the products from where they are being made to where they are used. A logistic business plan pdf includes sales and marketing analysis forecasts for the next five years.
- Is a logistic business profitable?
Running a transport and logistics business can be profitable, as reflected by this logistics business plan sample pdf.
- What are the 7 steps of a business plan?
A business plan addresses concerns regarding how to start logistics business. The 7 steps to making a business plan include drafting:
- Step 1: Executive summary
- Step 2: Business description.
- Step 3: Market analysis.
- Step 4: Company organization.
- Step 5: Products or services provided.
- Step 6: Financial outlook.
- Step 7: Operational Summary.
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