Free Freight Brokerage Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
1.0 Executive Summary
The purpose of this business plan is to raise $125,000 for the development of a freight brokerage while showcasing the expected financials and operations over the next three years. The Freight Brokerage, Inc. (“the Company”) is a New York based corporation that will provide freight brokerage and logistics consulting to customers in its targeted market. The Company was founded in 2009 by John Doe.
1.1 Products and Services
The Freight Brokerage has been developed to provide an extremely comprehensive management service of long and short distance trucking for companies and people in the Company’s target market area. The Company will offer its clients the ability to manage all of their localized or long distance hauling needs through one business that will provide its clients the ability to manage their shipments in a cost and time effective manner. The Company will also provide consulting advice (on a per hour basis) regarding improving the efficiency of the client’s supply chain management and delivery operations. As oil prices are currently fluctuating at an all time high price, it is imperative that product based companies maintain cost effective shipping and delivery operations. These services are now heavily in demand among product distributors and retailers. The third section of the business plan will further describe the services offered by the Freight Brokerage.
1.2 The Financing
Mr. Doe is seeking to raise $125,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
The Company’s mission is to become a recognized regional leader in the freight brokerage and logistics consulting industry.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the transportation industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target small businesses, medium sized businesses, and product distribution companies within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Freight Brokerage, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Freight Brokerage requires $125,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Freight Brokerage, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Freight Brokerage. Based on historical numbers, the business could fetch a sales premium of up to 3 to 6 times the previous year’s earnings depending on the strength and regularity of the Freight Brokerage’s income.
3.0 Products and Services
Below is a description of the freight brokerage and logistics consulting services offered by the Freight Brokerage.
3.1 Freight Brokerage Services
Mr. Doe believes that the key to maintaining a successful business operation will be to ensure that clients can easily and quickly place orders for shipping their large merchandise trucking needs for short or long distances throughout the local or regional target market. At the onset of the operations, the Company will source several trucking subcontractors that will provide dry freight hauling services to retailers and product distributors. Once the business expands, Mr. Doe may include specialty hauling services for perishable materials. The Company may also arrange moving services to individual customers.
3.2 Logistics Consulting and Supply Chain Management
In addition to the service provided above, the Company will make sure that each transportation order is handled in a safe and professional manner. The most important key to maintaining and developing successful business operations is to be able to consistently deliver high quality freight brokerage services at reasonable prices. With the recent increase in the price of diesel fuels, it is especially important, more now than ever, that Management develops and implements strategies to minimize the possibility of mistakes. The Company will also provide per hour consulting for clients that are seeking to improve the economic efficiency of their supply chain and transportation/delivery operations. Mr. Doe expects that this aspect of the Company’s operations will generate 15% to 20% of the aggregate gross revenues.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the freight brokerage and transportation industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2010, at which point the economy will begin a prolonged recovery period. A primary concern for the Company is its ability to price its services affordably during times of economic recession or spikes of oil prices. As of 2010, the price of oil and its associated refined energy products have reached a multiyear high with a sharp retraction in price. This volatility in oil prices has caused the freight and trucking industries costs to rise significantly during last six months. While this is a concern for the business, it is a risk and an issue faced by all other businesses as well. Mr. Doe will continue to increase prices (at a standardized rate of markup) to ensure the profitability of the business.
4.2 Industry Analysis
Freight transportation is one of the United States biggest industries. Within the continental US, trucking is the most cost efficient method for managing shipments. The freight transportation industry generates $100 billion dollars per year and provides jobs for more than 800,000 people. Each year the industry provides average annual payrolls in excess of $12.6 billion dollars per year. Over the last five years the number of established trucking businesses has increased from 40,821 businesses to 47,000. Gross receipts increased by 38.2%, primarily because of the increases in fuel costs over the last three years.
4.3 Customer Profile
The Freight Brokerage intends to operate as a general broker of transportation and delivery of merchandise, household goods, and other items for companies and individuals across the state. As such, it is difficult to determine the average customer of the Company as the business will have the licensure and the ability to effectively arrange for the transportation any type of merchandise. Management anticipates that the business will receive orders for service from both companies seeking to move merchandise as well as people relocating to different areas of the target and regional market area.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Freight Brokerage intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Company.
5.1 Marketing Objectives
• Establish relationships with trucking companies across the United States.
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
5.2 Marketing Strategies
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, and promote the business through word of mouth advertising. The business actively advertises its affordable transportation and delivery services. Mr. Doe 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.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• The Freight Brokerage will have an annual revenue growth rate of 10% per year.
• The Owner will acquire $125,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
The Company’s revenues are sensitive to many external factors. Should the cost of oil continue to increase significantly, Management fully expects that its bottom line income will decrease. However, the Company has priced its services so that increases in the price of oil will not severely impact the Company’s ability to operate both profitably and cash flow positive. In the event of a dramatic increase in price, Management will seek to increase the price of its freight brokerage services to reflect the higher transportation costs.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis