Free Limousine Service 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 $200,000 for the development of a limousine service while showcasing the expected financials and operations over the next three years. The Limousine Service, Inc. (“the Company”) is a New York based corporation that will provide transportation services via its fleet of town cars and limousines to customers in its targeted market. The Company was founded by John Doe.
1.1 Products and Services
As stated above, Limousine Service, Inc. will be actively engaged in providing chauffeuring and transportation services to residents within its local market. The business will be able to provide transportation services for simple rides to the airports, proms, weddings, and daily transportation needs of wealthier clients. At the onset of operations, Mr. Doe intends to have a fleet of three vehicles: one limousine (that will comfortably seat up to 8 people), and two town cars for local and airport transportation needs. The Company will price its services on per mile or per hour basis depending on the client’s transportation needs. The third section of the business plan will further describe the services offered by the Limousine Service.
1.2 The Financing
Mr. Doe is seeking to raise $200,000 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. Mr. Doe will contribute $25,000 to the venture.
1.3 Mission Statement
Limousine Service, Inc.’s mission is to become the recognized leader in its targeted market for transportation and chauffeuring services.
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 individuals and corporations (with executive transportation needs) within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Limousine Service, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, Limousine Service, Inc. requires $200,000 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 Limousine Service, 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 Limousine Service, Inc. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Products and Services
Below is a description of the transportation services offered by the Company.
3.1 Limousine Transportation Services
The first segment of the Company’s operations will include the rental and use of the Company’s limousine. This vehicle is expected to operate 20 of the 30 days of the month. During the month of May, the Company anticipates that the limousine segment of the business will generate the most revenue due to many high school and college proms held throughout the area. The Company, because of its low overhead, will be able to offer pricing that is substantially lower than that of rival companies operating within similar markets.
3.2 Town Car Transportation Services
The Company’s town car vehicles will operate in constant operation, and are expected to generate up to $260 per day of vehicle fees (per vehicle). The town car chauffeuring aspect of the business is the most important part of the Company’s operations as it will operate on a daily basis, while providing Limousine Service, Inc. with a steady positive cash flow. As time progresses, the Company will continually add more chauffeurs and vehicles to its fleet to further increase sales. In the future, the business may seek to use lease financing for vehicles, which would allow the Company to operate with a more stable balance sheet while concurrently earning a higher return on its investment.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the limousine and personal 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 moderate. The meltdown of the sub prime mortgage market coupled with increasing gas prices has led many people to believe that the US is on the cusp of a double dip economic recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows.
4.2 Industry Analysis
Limousine and chauffeuring operations provide over $2 billion dollars a year to the general US economy. The industry employs more than 27,000 people, and provides annual payrolls that exceed $600 million dollars per year. The growth rate of this industry has remained in step with that the general growth of the country’s GDP. Management feels that by maintaining a high end client base, the Company can continue to generate revenues despite the current deleterious economic conditions in the United States. The average taxi or limousine company has 9 employees and grosses $600,000 per year in revenue. While the limousine business’ revenue is predominately driven by business and travel; small companies can indeed very productively compete with their larger counter-parts. This ability, of course, is dependent upon their marketing strategies and the effectiveness of that marketing.
4.3 Customer Profile
Management expects a broad number of customers to contact the Company for use of the Company’s limousine and town car services. Customers will range from business executives, prom goers, and people needing local transportation to airports/events. As such it is difficult to quantify the exact demographic profile of the “average” customer of Limousine Service, Inc. However, Management has segmented its market into to two primary categories: business customers and individual customers.
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
Limousine Service, Inc. 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
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.
• Establish relationships with wedding and event planners within the targeted market.
5.2 Marketing Strategies
Foremost, Management will engage an expansive marketing program to ensure that executives and senior managers of businesses are well aware of the Limousine Service, Inc. brand and the service that it provides. To that end, Management intends to engage a broad based marketing strategy in the target market that will specifically target these people and businesses. Initially, Management intends to directly approach medium sized businesses and large corporations with sales literature that will showcase the comfort, cost efficiency, and promptness of the Company’s vehicles. Mr. Doe will also engage a traditional marketing strategy that will include listing the business in online and traditional Yellow Book listings. Management will also develop relationships with concierges at local hotels and concierge services so that the business receives a significant amount of referral business. This referral strategy will also be directed towards wedding and event planners so that the business becomes the vendor of choice for transportation services for these events. Additionally, Limousine Service, Inc. will maintain an extensive website that will showcase images of the Company’s vehicles, its pricing schedule, and how to contact the Company. Mr. Doe will use targeted key word advertisements such as pay per click advertising that will generate interest in the business’ operations. These strategies are expensive, but the results can be phenomenal if they are executed correctly.
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
• Limousine Service, Inc. will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $200,000 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 increase significantly, Management fully expects that its bottom line income will decrease. However, Limousine Service, Inc. has priced its services so that moderate 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 transportation 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