Start-up | |
Requirements | |
Start-up Expenses | |
Legal | $1,000 |
Stationery etc. | $1,000 |
Brochures | $1,000 |
Advertising | $20,000 |
Expensed Computer Equipment/Software | $10,000 |
Insurance | $0 |
Rent | $1,500 |
Research and Development | $0 |
Other | $0 |
Total Start-up Expenses | $34,500 |
Start-up Assets | |
Cash Required | $155,500 |
Other Current Assets | $10,000 |
Long-term Assets | $0 |
Total Assets | $165,500 |
Total Requirements | $200,000 |
The services offered by Promerit Advertising cover an email marketing project in its entirety, from original concept to post-campaign evaluation. The service includes the following:
It was recently reported in an eMarketeer online advertising report that online promotions are very powerful with offline companies, as well as online companies. Though offline companies are offering promotions that necessitate the customer going to one of the company’s stores, consumers feel positive about the online promotions. This opens up a new avenue for these companies to target customer groups that use computers at work and at home.
Consumers said they cared mostly about return policies, customer service, and product selection. A very impressive 94 percent of surveyed users reported they have shopped online before. About 76 percent of those surveyed said promotions were a positive influence on their buying behavior. Some 50 percent said online coupons were especially persuasive while 70 percent found offline coupons equally attractive.
An email campaign can be used to reach target customers no matter how small a company’s Internet presence is, as long as the customer wants the product.
There are two distinct customer groups that Promerit Advertising is focused on:
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Online Companies | 30% | 630,900 | 820,170 | 1,066,221 | 1,386,087 | 1,801,913 | 30.00% |
Offline Companies | 0% | 1,500,700 | 1,500,700 | 1,500,700 | 1,500,700 | 1,500,700 | 0.00% |
Other | 0% | 0 | 0 | 0 | 0 | 0 | 0.00% |
Total | 11.57% | 2,131,600 | 2,320,870 | 2,566,921 | 2,886,787 | 3,302,613 | 11.57% |
By any measure, the Internet is one of the fastest-growing commercial phenomena ever witnessed by society. Host computers, or servers, have exploded from 3.2 million in 1994 to roughly 79.2 million as of July 2001. During the same time period, the number of websites roared to more than 6 million from only 3,000.
A key factor in the recent growth of the Internet is the popularity of the sub-$1,000 PC. Rapidly falling component prices have allowed PC manufacturers to pass cost savings on to their customers, resulting in a more attractively priced product. Computers sold at or below the $1,000 level have appealed to first-time PC users and lower income families. Because of the more affordable prices, PC penetration in the United States is now approximately 50%, according to Dataquest, a market research firm based in San Jose, California.
The United States accounts for more than half of the world’s total Internet users. When consumers today are asked why they purchased a personal computer, the most common answer is to connect to the Internet to get their email.
Promerit Advertising’s strategy is to utilize the extensive network of contacts both Robert and Cheryl have with companies already sold on the value of email marketing. In addition, Promerit will use its internal expertise to launch an email marketing campaign directed at a select group of its target customers.
With over two million potential customers, Promerit Advertising will focus an email campaign on a select group of 50,000 businesses each fiscal quarter. We estimate a five percent response rate to the campaign which will generate 1,250 leads. These leads will then be used to generate business contacts. Over the year, we will generate 5,000 leads.
Promerit Advertising’s sales strategy is simple. We will use the email marketing campaign directed at our customer base as a model of what we can accomplish for them. We anticipate that online companies will be most accessible to our services. We will be successful with offline companies overtime, but initially sales will be weak with this group.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Online Companies | $178,830 | $270,000 | $360,000 |
Offline Companies | $47,000 | $100,000 | $170,000 |
Total Sales | $225,830 | $370,000 | $530,000 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Online Companies | $0 | $0 | $0 |
Offline Companies | $0 | $0 | $0 |
Subtotal Direct Cost of Sales | $0 | $0 | $0 |
Robert Humphrey has five years of experience in email marketing campaigns and ten years of experience in direct marketing. He is a graduate of Ohio State University with a BA in marketing. Robert worked with several advertising companies before arriving at Kemp and Johnson Advertising in 1997. With Kemp and Johnson, Robert created and grew the Internet marketing group. Robert was project leader for the successful Buy.com and Verison email marketing campaign.
Cheryl Littlejohn graduated with a BS in computer science from UCLA in 1996. She immediately went to work for the Internet start-up Temple Communication as an IT administrator. She left in 1998 to join the start-up 800.com as the technical lead of its email campaign. In 2000, she joined Richard’s Internet group at Kemp and Johnson as technical lead of the Verison email marketing campaign.
Email marketing is an emerging marketing tool with few industry experts. Robert and Cheryl’s accomplishments over the past three years has been singled out by the industry as models for successful email marketing campaigns.
Robert Humphrey will be responsible for tactical elements of the marketing campaign and Cheryl Littlejohn will manage the technical aspects of the campaign.
In addition to Robert and Cheryl, there will be three other staff members:
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Robert Humphrey | $32,000 | $40,000 | $45,000 |
Cheryl Littlejohn | $32,000 | $40,000 | $45,000 |
Secretary/Receptionist | $20,000 | $25,000 | $28,000 |
Salesperson | $38,000 | $50,000 | $55,000 |
Bookkeeper | $20,000 | $26,000 | $29,000 |
Other | $0 | $0 | $0 |
Total People | 5 | 5 | 0 |
Total Payroll | $142,000 | $181,000 | $202,000 |
The financial plan is presented in the following topics.
The monthly sales break-even point is is shown in the table and chart below.
Break-even Analysis | |
Monthly Revenue Break-even | $19,308 |
Assumptions: | |
Average Percent Variable Cost | 0% |
Estimated Monthly Fixed Cost | $19,308 |
The following table and charts outline the projected profit and loss for three years. We estimate that the agency will not be profitable until the second year of operation. Promerit Advertising will then grow by about 9% for the second and third year.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $225,830 | $370,000 | $530,000 |
Direct Cost of Sales | $0 | $0 | $0 |
Other Production Expenses | $0 | $0 | $0 |
Total Cost of Sales | $0 | $0 | $0 |
Gross Margin | $225,830 | $370,000 | $530,000 |
Gross Margin % | 100.00% | 100.00% | 100.00% |
Expenses | |||
Payroll | $142,000 | $181,000 | $202,000 |
Sales and Marketing and Other Expenses | $48,000 | $60,000 | $80,000 |
Depreciation | $0 | $0 | $0 |
Leased Equipment | $0 | $0 | $0 |
Utilities | $2,400 | $2,400 | $2,400 |
Insurance | $0 | $0 | $0 |
Rent | $18,000 | $18,000 | $18,000 |
Payroll Taxes | $21,300 | $27,150 | $30,300 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $231,700 | $288,550 | $332,700 |
Profit Before Interest and Taxes | ($5,870) | $81,450 | $197,300 |
EBITDA | ($5,870) | $81,450 | $197,300 |
Interest Expense | $8,916 | $6,999 | $4,999 |
Taxes Incurred | $0 | $22,335 | $57,690 |
Net Profit | ($14,786) | $52,115 | $134,611 |
Net Profit/Sales | -6.55% | 14.09% | 25.40% |
The following table and chart highlight the projected cash flow for three years.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $56,458 | $92,500 | $132,500 |
Cash from Receivables | $124,685 | $248,971 | $365,839 |
Subtotal Cash from Operations | $181,143 | $341,471 | $498,339 |
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 | $181,143 | $341,471 | $498,339 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $142,000 | $181,000 | $202,000 |
Bill Payments | $90,432 | $133,818 | $188,745 |
Subtotal Spent on Operations | $232,432 | $314,818 | $390,745 |
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 | $20,004 | $20,004 | $20,004 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $252,436 | $334,822 | $410,749 |
Net Cash Flow | ($71,294) | $6,649 | $87,590 |
Cash Balance | $84,206 | $90,856 | $178,446 |
The table shows projected balance sheet for three years.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $84,206 | $90,856 | $178,446 |
Accounts Receivable | $44,688 | $73,216 | $104,877 |
Other Current Assets | $10,000 | $10,000 | $10,000 |
Total Current Assets | $138,894 | $174,072 | $293,323 |
Long-term Assets | |||
Long-term Assets | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 |
Total Assets | $138,894 | $174,072 | $293,323 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $8,184 | $11,251 | $15,895 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $8,184 | $11,251 | $15,895 |
Long-term Liabilities | $79,996 | $59,992 | $39,988 |
Total Liabilities | $88,180 | $71,243 | $55,883 |
Paid-in Capital | $100,000 | $100,000 | $100,000 |
Retained Earnings | ($34,500) | ($49,286) | $2,829 |
Earnings | ($14,786) | $52,115 | $134,611 |
Total Capital | $50,714 | $102,829 | $237,440 |
Total Liabilities and Capital | $138,894 | $174,072 | $293,323 |
Net Worth | $50,714 | $102,829 | $237,440 |
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7311, Advertising Agencies, are shown for comparison.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 63.84% | 43.24% | 8.50% |
Percent of Total Assets | ||||
Accounts Receivable | 32.17% | 42.06% | 35.75% | 36.20% |
Other Current Assets | 7.20% | 5.74% | 3.41% | 42.20% |
Total Current Assets | 100.00% | 100.00% | 100.00% | 80.80% |
Long-term Assets | 0.00% | 0.00% | 0.00% | 19.20% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 5.89% | 6.46% | 5.42% | 42.90% |
Long-term Liabilities | 57.60% | 34.46% | 13.63% | 13.00% |
Total Liabilities | 63.49% | 40.93% | 19.05% | 55.90% |
Net Worth | 36.51% | 59.07% | 80.95% | 44.10% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 100.00% | 100.00% | 100.00% | 0.00% |
Selling, General & Administrative Expenses | 106.55% | 85.91% | 74.60% | 81.60% |
Advertising Expenses | 21.25% | 16.22% | 15.09% | 3.50% |
Profit Before Interest and Taxes | -2.60% | 22.01% | 37.23% | 2.50% |
Main Ratios | ||||
Current | 16.97 | 15.47 | 18.45 | 1.67 |
Quick | 16.97 | 15.47 | 18.45 | 1.39 |
Total Debt to Total Assets | 63.49% | 40.93% | 19.05% | 55.90% |
Pre-tax Return on Net Worth | -29.16% | 72.40% | 80.99% | 5.70% |
Pre-tax Return on Assets | -10.65% | 42.77% | 65.56% | 12.80% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | -6.55% | 14.09% | 25.40% | n.a |
Return on Equity | -29.16% | 50.68% | 56.69% | n.a |
Activity Ratios | ||||
Accounts Receivable Turnover | 3.79 | 3.79 | 3.79 | n.a |
Collection Days | 56 | 78 | 82 | n.a |
Accounts Payable Turnover | 12.05 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 26 | 26 | n.a |
Total Asset Turnover | 1.63 | 2.13 | 1.81 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 1.74 | 0.69 | 0.24 | n.a |
Current Liab. to Liab. | 0.09 | 0.16 | 0.28 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $130,710 | $162,821 | $277,428 | n.a |
Interest Coverage | -0.66 | 11.64 | 39.47 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.62 | 0.47 | 0.55 | n.a |
Current Debt/Total Assets | 6% | 6% | 5% | n.a |
Acid Test | 11.51 | 8.96 | 11.86 | n.a |
Sales/Net Worth | 4.45 | 3.60 | 2.23 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
Online Companies | 0% | $6,000 | $6,000 | $10,900 | $12,030 | $14,400 | $16,000 | $16,000 | $17,000 | $18,000 | $19,000 | $20,500 | $23,000 |
Offline Companies | 0% | $0 | $0 | $0 | $0 | $4,000 | $5,000 | $4,000 | $6,000 | $6,000 | $5,000 | $7,000 | $10,000 |
Total Sales | $6,000 | $6,000 | $10,900 | $12,030 | $18,400 | $21,000 | $20,000 | $23,000 | $24,000 | $24,000 | $27,500 | $33,000 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Online Companies | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Offline Companies | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Robert Humphrey | 0% | $2,000 | $2,000 | $2,000 | $2,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
Cheryl Littlejohn | 0% | $2,000 | $2,000 | $2,000 | $2,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 |
Secretary/Receptionist | 0% | $0 | $0 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
Salesperson | 0% | $0 | $0 | $3,000 | $3,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 |
Bookkeeper | 0% | $0 | $0 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total People | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | |
Total Payroll | $4,000 | $4,000 | $11,000 | $11,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $6,000 | $6,000 | $10,900 | $12,030 | $18,400 | $21,000 | $20,000 | $23,000 | $24,000 | $24,000 | $27,500 | $33,000 | |
Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Gross Margin | $6,000 | $6,000 | $10,900 | $12,030 | $18,400 | $21,000 | $20,000 | $23,000 | $24,000 | $24,000 | $27,500 | $33,000 | |
Gross Margin % | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | |
Expenses | |||||||||||||
Payroll | $4,000 | $4,000 | $11,000 | $11,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | |
Sales and Marketing and Other Expenses | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 | |
Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Leased Equipment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Utilities | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
Insurance | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Rent | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | $1,500 | |
Payroll Taxes | 15% | $600 | $600 | $1,650 | $1,650 | $2,100 | $2,100 | $2,100 | $2,100 | $2,100 | $2,100 | $2,100 | $2,100 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $10,300 | $10,300 | $18,350 | $18,350 | $21,800 | $21,800 | $21,800 | $21,800 | $21,800 | $21,800 | $21,800 | $21,800 | |
Profit Before Interest and Taxes | ($4,300) | ($4,300) | ($7,450) | ($6,320) | ($3,400) | ($800) | ($1,800) | $1,200 | $2,200 | $2,200 | $5,700 | $11,200 | |
EBITDA | ($4,300) | ($4,300) | ($7,450) | ($6,320) | ($3,400) | ($800) | ($1,800) | $1,200 | $2,200 | $2,200 | $5,700 | $11,200 | |
Interest Expense | $819 | $806 | $792 | $778 | $764 | $750 | $736 | $722 | $708 | $694 | $681 | $667 | |
Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Net Profit | ($5,119) | ($5,106) | ($8,242) | ($7,098) | ($4,164) | ($1,550) | ($2,536) | $478 | $1,492 | $1,506 | $5,019 | $10,533 | |
Net Profit/Sales | -85.32% | -85.09% | -75.61% | -59.00% | -22.63% | -7.38% | -12.68% | 2.08% | 6.22% | 6.27% | 18.25% | 31.92% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $1,500 | $1,500 | $2,725 | $3,008 | $4,600 | $5,250 | $5,000 | $5,750 | $6,000 | $6,000 | $6,875 | $8,250 | |
Cash from Receivables | $0 | $150 | $4,500 | $4,623 | $8,203 | $9,182 | $13,865 | $15,725 | $15,075 | $17,275 | $18,000 | $18,088 | |
Subtotal Cash from Operations | $1,500 | $1,650 | $7,225 | $7,630 | $12,803 | $14,432 | $18,865 | $21,475 | $21,075 | $23,275 | $24,875 | $26,338 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $1,500 | $1,650 | $7,225 | $7,630 | $12,803 | $14,432 | $18,865 | $21,475 | $21,075 | $23,275 | $24,875 | $26,338 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $4,000 | $4,000 | $11,000 | $11,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 | |
Bill Payments | $237 | $7,119 | $7,140 | $8,141 | $8,142 | $8,563 | $8,550 | $8,536 | $8,522 | $8,508 | $8,494 | $8,480 | |
Subtotal Spent on Operations | $4,237 | $11,119 | $18,140 | $19,141 | $22,142 | $22,563 | $22,550 | $22,536 | $22,522 | $22,508 | $22,494 | $22,480 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $5,904 | $12,786 | $19,807 | $20,808 | $23,809 | $24,230 | $24,217 | $24,203 | $24,189 | $24,175 | $24,161 | $24,147 | |
Net Cash Flow | ($4,404) | ($11,136) | ($12,582) | ($13,178) | ($11,006) | ($9,799) | ($5,352) | ($2,728) | ($3,114) | ($900) | $714 | $2,190 | |
Cash Balance | $151,096 | $139,960 | $127,378 | $114,199 | $103,193 | $93,395 | $88,043 | $85,316 | $82,202 | $81,302 | $82,016 | $84,206 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $155,500 | $151,096 | $139,960 | $127,378 | $114,199 | $103,193 | $93,395 | $88,043 | $85,316 | $82,202 | $81,302 | $82,016 | $84,206 |
Accounts Receivable | $0 | $4,500 | $8,850 | $12,525 | $16,925 | $22,522 | $29,090 | $30,225 | $31,750 | $34,675 | $35,400 | $38,025 | $44,688 |
Other Current Assets | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 |
Total Current Assets | $165,500 | $165,596 | $158,810 | $149,903 | $141,124 | $135,715 | $132,485 | $128,268 | $127,066 | $126,877 | $126,702 | $130,041 | $138,894 |
Long-term Assets | |||||||||||||
Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Assets | $165,500 | $165,596 | $158,810 | $149,903 | $141,124 | $135,715 | $132,485 | $128,268 | $127,066 | $126,877 | $126,702 | $130,041 | $138,894 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $6,882 | $6,869 | $7,870 | $7,857 | $8,278 | $8,265 | $8,252 | $8,238 | $8,225 | $8,211 | $8,198 | $8,184 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $0 | $6,882 | $6,869 | $7,870 | $7,857 | $8,278 | $8,265 | $8,252 | $8,238 | $8,225 | $8,211 | $8,198 | $8,184 |
Long-term Liabilities | $100,000 | $98,333 | $96,666 | $94,999 | $93,332 | $91,665 | $89,998 | $88,331 | $86,664 | $84,997 | $83,330 | $81,663 | $79,996 |
Total Liabilities | $100,000 | $105,215 | $103,535 | $102,869 | $101,189 | $99,943 | $98,263 | $96,583 | $94,902 | $93,222 | $91,541 | $89,861 | $88,180 |
Paid-in Capital | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 | $100,000 |
Retained Earnings | ($34,500) | ($34,500) | ($34,500) | ($34,500) | ($34,500) | ($34,500) | ($34,500) | ($34,500) | ($34,500) | ($34,500) | ($34,500) | ($34,500) | ($34,500) |
Earnings | $0 | ($5,119) | ($10,225) | ($18,467) | ($25,564) | ($29,728) | ($31,278) | ($33,814) | ($33,337) | ($31,845) | ($30,339) | ($25,320) | ($14,786) |
Total Capital | $65,500 | $60,381 | $55,275 | $47,033 | $39,936 | $35,772 | $34,222 | $31,686 | $32,163 | $33,655 | $35,161 | $40,180 | $50,714 |
Total Liabilities and Capital | $165,500 | $165,596 | $158,810 | $149,903 | $141,124 | $135,715 | $132,485 | $128,268 | $127,066 | $126,877 | $126,702 | $130,041 | $138,894 |
Net Worth | $65,500 | $60,381 | $55,275 | $47,033 | $39,936 | $35,772 | $34,222 | $31,686 | $32,163 | $33,655 | $35,161 | $40,180 | $50,714 |
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Discover the world’s #1 plan building software
Written by Dave Lavinsky
If you’re looking to create a taxi service business plan, you’ve come to the right place!
Over the past 25 years, the PlanPros team has helped over 1 million entrepreneurs and business owners write business plans….and many of them have started and grown successful taxi service businesses. Below is an example of a business plan for a taxi service business.
Below is our taxi service business plan template and sample plan created using our free ai business plan generator :
Company overview.
At SwiftRide Taxi Solutions, we pride ourselves on providing top-notch transportation services in Linden, NJ, and surrounding areas. Established to meet the growing demand for reliable and efficient taxi services, our company has quickly become a preferred choice for local residents, business travelers, and tourists alike. Our fleet comprises modern, well-maintained vehicles operated by professional, courteous drivers, ensuring a comfortable and safe ride every time. Operating in a strategic location, we leverage our local knowledge and technological advancements to offer timely services, setting us apart in a competitive market.
Our success stems from a combination of key factors and accomplishments. Firstly, our commitment to customer satisfaction has earned us a loyal customer base and positive word-of-mouth referrals. We’ve also invested significantly in technology, allowing for easy booking and real-time tracking of our vehicles, enhancing the overall customer experience. Moreover, our strategic partnerships with local businesses and our participation in community events have bolstered our brand presence and community engagement. These efforts have positioned us as a leading taxi service provider in our area, with a solid foundation for future growth.
The taxi and ride-sharing industry has witnessed significant transformations, driven by technological advancements and changing consumer behaviors. The rise of ride-sharing platforms has introduced a new level of competition, compelling traditional taxi services to innovate and adapt. This evolving landscape emphasizes the importance of customer service, technological integration, and operational efficiency. In Linden, NJ, the demand for reliable transportation services continues to grow, fueled by an increase in tourism, business activities, and local events. Our strategic approach positions us to capitalize on these opportunities by offering differentiated services that cater to the specific needs of our diverse customer base.
Our target customers encompass a wide range of demographics, including local residents, business travelers, and tourists in Linden, NJ. We cater to individuals seeking convenience, reliability, and quality service in their transportation options. Our analysis indicates a significant demand among professionals for timely and efficient travel to and from the airport, as well as among tourists and locals looking for safe and comfortable rides around the city. Understanding these customer segments allows us to tailor our services and marketing strategies to meet their unique needs, ensuring a superior service experience.
Our competitive advantage lies in our ability to blend the best aspects of our competitors’ offerings with our exceptional customer service and technological innovations. This unique positioning allows us to cater to a broad spectrum of customer needs, setting us apart in the market.
Our marketing strategy is centered around online and community-based promotional efforts. We leverage social media, SEO, and email marketing to engage with our audience and promote our services. Our user-friendly website and targeted online advertising campaigns play a crucial role in attracting new customers. Additionally, we engage in community sponsorship and events to enhance our local brand presence. Traditional marketing methods, such as distributing flyers and referral programs, complement our online efforts, creating a well-rounded approach to reach and retain customers in Linden, NJ. Our promotions plan is designed to build trust and loyalty among our customer base, ensuring we remain their top choice for taxi services.
Our key operational processes include efficient dispatch and scheduling, regular maintenance of our fleet, and ongoing driver training programs to ensure the highest level of service. We’ve set milestones for expanding our fleet, integrating advanced booking technologies, and achieving specific customer satisfaction targets. These operational goals support our mission to provide exceptional taxi services and drive sustainable business growth.
Our management team is composed of experienced professionals with diverse backgrounds in the transportation, technology, and customer service industries. Their collective expertise drives our strategic decision-making, operational efficiencies, and customer-focused approach, positioning SwiftRide Taxi Solutions for continued success and market leadership.
To achieve our growth objectives, we require additional funding to expand our fleet, invest in technology, and enhance our marketing efforts. This investment will enable us to meet the increasing demand for our services, improve operational efficiency, and secure a competitive edge in the market.
Below is an overview of our expected financial performance over the next five years:
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | |
---|---|---|---|---|---|
Revenues | $3,141,105 | $3,401,283 | $3,683,012 | $3,988,077 | $4,318,410 |
Direct Expenses | $1,467,225 | $1,541,974 | $1,620,530 | $1,703,088 | $1,789,853 |
Gross Profit (%) | 53.3% | 54.7% | 56% | 57.3% | 58.6% |
Other Expenses | $97,085 | $100,030 | $103,065 | $106,192 | $109,414 |
Depreciation | $73,000 | $73,000 | $73,000 | $73,000 | $73,000 |
Amortization | $0 | $0 | $0 | $0 | $0 |
Interest Expense | $51,500 | $51,500 | $51,500 | $51,500 | $51,500 |
Income Tax Expense | $508,303 | $572,172 | $642,220 | $719,003 | $803,124 |
SwiftRide Taxi Solutions is a new Taxi Service serving customers in Linden, NJ. We are a local taxi service aimed at providing an unmatched transportation solution in the area. Recognizing the gap in high-quality local taxi services, we have embarked on a mission to fill this void by offering reliable, comfortable, and technologically advanced taxi services that cater to the needs of Linden residents and visitors alike.
Our offerings are designed to cater to the modern passenger’s needs, including a state-of-the-art Ride-Booking App that allows customers to request rides with ease, GPS Navigation Systems to ensure efficient routing and timely arrivals, Taxi Meters for transparent and fair billing, Passenger Safety Equipment for peace of mind during travel, and In-Car Payment Systems for convenience in settling fares. These products and services are the backbone of our operations, ensuring a seamless and satisfactory experience for all our customers.
Based in Linden, NJ, SwiftRide Taxi Solutions is strategically positioned to serve the local community and its surrounding areas effectively. Our deep understanding of the local landscape, combined with our commitment to leveraging technology for better service delivery, sets us apart as a preferred choice for taxi services in Linden, NJ.
SwiftRide Taxi Solutions is uniquely qualified to succeed for several reasons. Our founder brings a wealth of experience from previously running a successful taxi service, ensuring that we have the knowledge and expertise required to navigate the industry’s challenges. Additionally, our commitment to providing superior taxi services, compared to what is currently available from the competition, positions us as a leader in the local market. These factors, combined with our passion for customer satisfaction, form the foundation of our success.
Since our establishment on January 1, 2024, as a C Corporation, we have achieved significant milestones. Our accomplishments to date include the development of a distinctive company logo that represents our brand’s values and ethics, the creative process behind our company name that resonates with our mission and vision, and the securing of an ideal location that serves as our operational base. These achievements mark the beginning of our journey towards becoming the go-to taxi service in Linden, NJ.
The Taxi Service industry in the United States is a significant market with an estimated size of $23.6 billion. This industry has shown steady growth over the past few years, with an expected annual growth rate of 2.7% in the coming years. This growth is attributed to factors such as an increase in demand for convenient transportation options and the rise of ride-sharing services.
One trend in the Taxi Service industry that bodes well for SwiftRide Taxi Solutions is the shift towards more personalized and on-demand services. Customers are increasingly looking for reliable, efficient, and comfortable transportation options, which SwiftRide Taxi Solutions aims to provide. With the rise of technology and mobile apps, customers are also looking for easy booking and payment options, which SwiftRide Taxi Solutions can capitalize on.
Another trend in the Taxi Service industry is the focus on sustainability and eco-friendly transportation options. As more customers become environmentally conscious, there is a growing demand for taxi services that prioritize sustainability. SwiftRide Taxi Solutions can differentiate itself by offering hybrid or electric vehicles, which can attract a niche market of eco-conscious customers in Linden, NJ. By aligning with these industry trends, SwiftRide Taxi Solutions has the opportunity to carve out a successful niche in the competitive Taxi Service market.
Below is a description of our target customers and their core needs.
Our primary target customers will be local residents of Linden, NJ who require reliable and convenient transportation for their daily commutes, errands, and social activities. We will focus on providing top-notch services to individuals who do not own vehicles or prefer not to drive, ensuring they have a dependable alternative for their mobility needs. By offering competitive pricing and exceptional customer service, we will quickly become the go-to choice for local transportation.
We will also target business professionals who need timely and comfortable transportation to and from work, meetings, and corporate events. Our services will include options for pre-scheduled pickups and drop-offs, catering to the busy schedules of our corporate clientele. Additionally, we will offer premium services for executives and VIPs, ensuring a high-quality experience for those who require it.
Another key segment we will target is tourists and visitors to Linden, NJ, who need hassle-free transportation to explore the city’s attractions, hotels, and nearby destinations. We will provide tailored tour packages and sightseeing services to enhance their travel experience. Our knowledgeable drivers will offer insights and recommendations, making us an essential part of their visit.
We will also focus on serving individuals with special transportation needs, such as seniors and people with disabilities, by offering accessible vehicles and trained drivers. Our commitment to inclusivity will ensure that every customer, regardless of their mobility challenges, will have a safe and comfortable ride. This dedication to accessibility will set us apart from competitors and build a loyal customer base.
SwiftRide Taxi Solutions provides high-quality taxi services to residents who prioritize comfort and reliability. Customers expect timely arrivals and departures, ensuring they reach their destinations punctually. Our fleet is well-maintained, offering a clean and safe environment for all passengers.
We cater to the need for advanced booking options through our user-friendly app, allowing customers to schedule rides at their convenience. Real-time tracking features give customers peace of mind, knowing exactly when their taxi will arrive. Our competitive pricing ensures affordability without compromising service quality.
Our drivers are professionally trained, enhancing the overall customer experience with courteous and knowledgeable service. We understand the importance of accessibility, offering services that accommodate individuals with special needs. Customer support is readily available to address any concerns or questions, ensuring a seamless and satisfying ride experience.
Direct competitors, elegant chauffeurs.
Elegant Chauffeurs offers high-end taxi and chauffeur services, targeting corporate clients and special events. They provide luxury sedans, SUVs, and limousines. Price points are premium, with an average ride costing between $50 and $150 depending on the distance and vehicle type. Their revenue is estimated to be around $2 million annually. They operate in Linden, NJ, and surrounding areas including Newark and Elizabeth. The primary customer segments include corporate executives, tourists, and event attendees. Key strengths include a high level of service, luxury vehicles, and experienced drivers. Weaknesses are higher costs and a narrower market appeal limited to premium customers.
Travelers Taxi, LLC provides standard taxi services as well as airport shuttles and package delivery. Their fleet includes sedans and minivans. Price points are competitive, with fares ranging from $15 to $50 depending on the service. The company generates an estimated $1.5 million in annual revenue. They serve Linden, NJ, and extend their services to include Newark Liberty International Airport. Their customer segments include local residents, business travelers, and tourists. Key strengths are affordability, a diverse range of services, and reliability. Weaknesses include a less luxurious fleet and longer wait times during peak hours.
Chico Car Service specializes in affordable and reliable taxi services, offering both on-demand rides and scheduled pickups. Their fleet includes sedans and SUVs. Price points are budget-friendly, with typical fares ranging between $10 and $40. The company has an estimated annual revenue of around $1 million. They serve Linden, NJ, and nearby cities like Rahway and Cranford. Key customer segments include local residents, students, and budget-conscious travelers. Key strengths are affordability, convenience, and customer loyalty. Weaknesses include a smaller fleet size and limited premium service options.
SwiftRide Taxi Solutions distinguishes itself in the competitive market through exceptional service quality and customer-centric features. Our commitment to providing better taxi services than our competition is evident in multiple aspects. We have invested in a modern fleet of vehicles equipped with the latest safety and comfort features, ensuring a superior ride experience for our customers. Additionally, our drivers undergo rigorous training and background checks to guarantee professionalism and safety, setting us apart from other service providers.
We also leverage technology to enhance our service delivery. Our user-friendly mobile app offers seamless booking, real-time tracking, and cashless payment options, making the entire process hassle-free for our customers. Furthermore, our competitive pricing strategy, coupled with frequent promotional offers, ensures that our services remain affordable without compromising on quality. By continually innovating and prioritizing customer satisfaction, we maintain a distinct edge over our competitors in the Linden, NJ market.
Our marketing plan, included below, details our products/services, pricing and promotions plan.
SwiftRide Taxi Solutions offers a variety of products and services designed to enhance the customer experience and ensure efficient operations. Their primary offering is a user-friendly Ride-Booking App, which allows customers to easily book rides, track their taxi in real-time, and make payments. The app is available for free on both iOS and Android platforms, providing convenience and accessibility for all users.
To ensure drivers can navigate efficiently, SwiftRide includes advanced GPS Navigation Systems in each vehicle. These systems are equipped with real-time traffic updates and alternative route suggestions, helping drivers avoid delays and provide timely service. The cost of integrating these navigation systems into each vehicle is approximately $300 per unit.
Accurate fare calculation is crucial for both the driver and the passenger. SwiftRide uses high-precision Taxi Meters that ensure transparent and fair pricing. The average cost of these taxi meters is about $250 per unit, and they are regularly calibrated to maintain accuracy.
Passenger safety is a top priority for SwiftRide, which is why they invest in comprehensive Passenger Safety Equipment. This includes features like in-car cameras, emergency buttons, and first-aid kits. The safety equipment package typically costs around $150 per vehicle, providing peace of mind for both drivers and passengers.
For seamless transactions, SwiftRide installs state-of-the-art In-Car Payment Systems in all taxis. These systems support multiple payment methods, including credit/debit cards, mobile payments, and cash. The average cost of these payment systems is about $200 per unit, ensuring drivers can efficiently manage fares and tips.
By offering these products and services, SwiftRide aims to provide a reliable, safe, and convenient taxi service experience for all their customers.
At SwiftRide Taxi Solutions, we implement a variety of promotional methods to attract and retain customers in Linden, NJ. Our primary focus is on online marketing, leveraging the power of digital platforms to reach a broader audience. We utilize social media channels such as Facebook, Instagram, and Twitter to engage with potential customers, share updates, and run targeted advertising campaigns. Through these platforms, we also engage in community building by responding to customer inquiries and feedback promptly.
In addition to social media, we invest in search engine optimization (SEO) to ensure our website ranks highly in search engine results. This increases our visibility to individuals searching for taxi services in Linden. Our website is user-friendly and mobile-optimized, providing customers with an easy way to book rides and access information about our services.
Email marketing plays a significant role in our promotional strategy. We collect email addresses through our website and social media channels to send out newsletters, promotional offers, and important updates. This helps us maintain regular communication with our customers and keeps them informed about any new services or discounts we offer.
We also run online advertisements through Google Ads and other relevant platforms. These ads are targeted based on demographics, location, and customer behavior, ensuring that we reach the right audience. Additionally, we collaborate with local businesses and events to sponsor and promote our services, thereby increasing our brand presence in the community.
Our promotional efforts are not limited to online methods. We distribute flyers and business cards in high-traffic areas such as shopping centers, train stations, and community events. We also offer referral programs where existing customers receive discounts for referring new clients to us. This word-of-mouth marketing is highly effective in building trust and credibility.
To further enhance our visibility, we participate in local community events and sponsor charitable activities. This not only helps us give back to the community but also strengthens our brand image. By being actively involved in the community, we build strong relationships with potential customers who value local businesses that contribute to their area.
Overall, our comprehensive promotional strategy combines online marketing, community engagement, and traditional advertising methods to attract and retain customers in Linden, NJ. We remain committed to providing exceptional service and continuously adapting our promotional tactics to meet the evolving needs of our customers.
Our Operations Plan details:
To ensure the success of SwiftRide Taxi Solutions, there are several key day-to-day operational processes that we will perform:
SwiftRide Taxi Solutions expects to complete the following milestones in the coming months in order to ensure its success:
Our management team has the experience and expertise to successfully execute on our business plan.
SwiftRide Taxi Solutions management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:
William Gutierrez has a history of success and has successfully run a taxi service in the past. With a proven track record in the transportation industry, William brings invaluable experience and leadership to SwiftRide Taxi Solutions. His deep understanding of the operational challenges and opportunities within the taxi service sector positions him to steer the company towards sustained growth and innovation. William’s strategic vision and hands-on approach are critical assets that will help SwiftRide achieve its business objectives.
Funding requirements/use of funds.
To accomplish our growth goals, SwiftRide Taxi Solutions needs $515,000 in funding. Key uses of this funding will be as follows:
Capital Investments | |
---|---|
Building/Location Buildout | $100,000 |
Furniture for Office | $5,000 |
Office Equipment & Computers | $10,000 |
Vehicles (Taxi Fleet) | $250,000 |
Non Capital Investments | |
---|---|
Working Capital | $50,000 |
Initial Rent/Lease | $3,000 |
Staff Salaries (First 3 Months) | $75,000 |
Initial Marketing and Advertising | $10,000 |
Supplies | $2,000 |
Insurance | $10,000 |
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
---|---|---|---|---|---|---|
Revenues | ||||||
Revenues | $3,141,105 | $3,401,283 | $3,683,012 | $3,988,077 | $4,318,410 | |
Direct Costs | ||||||
Direct Costs | $1,467,225 | $1,541,974 | $1,620,530 | $1,703,088 | $1,789,853 | |
Salaries | $72,814 | $75,023 | $77,299 | $79,644 | $82,060 | |
Marketing Expenses | $6,067 | $6,251 | $6,441 | $6,637 | $6,838 | |
Rent/Utility Expenses | $6,067 | $6,251 | $6,441 | $6,637 | $6,838 | |
Other Expenses | $12,135 | $12,503 | $12,883 | $13,274 | $13,676 | |
Depreciation | $73,000 | $73,000 | $73,000 | $73,000 | $73,000 | |
Amortization | $0 | $0 | $0 | $0 | $0 | |
Interest Expense | $51,500 | $51,500 | $51,500 | $51,500 | $51,500 | |
Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
Taxable Income | $1,452,294 | $1,634,778 | $1,834,916 | $2,054,295 | $2,294,642 | |
Income Tax Expense | $508,303 | $572,172 | $642,220 | $719,003 | $803,124 | |
Net Profit Margin (%) | 30.1% | 31.2% | 32.4% | 33.5% | 34.5% |
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
---|---|---|---|---|---|---|
Cash | $1,030,108 | $2,149,975 | $3,398,413 | $4,795,019 | $5,824,507 | |
Other Current Assets | $269,621 | $291,953 | $316,136 | $332,339 | $359,867 | |
Intangible Assets | $0 | $0 | $0 | $0 | $0 | |
Acc Amortization | $0 | $0 | $0 | $0 | $0 | |
Fixed Assets | $365,000 | $365,000 | $365,000 | $365,000 | $365,000 | |
Accum Depreciation | $73,000 | $146,000 | $219,000 | $292,000 | $365,000 | |
Preliminary Exp | $0 | $0 | $0 | $0 | $0 | |
Current Liabilities | $132,737 | $139,331 | $146,256 | $150,773 | $158,272 | |
Debt outstanding | $515,000 | $515,000 | $515,000 | $515,000 | $0 | |
Share Capital | $0 | $0 | $0 | $0 | $0 | |
Retained earnings | $943,991 | $2,006,597 | $3,199,293 | $4,534,585 | $6,026,103 | |
FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
---|---|---|---|---|---|---|
Net Income (Loss) | $943,991 | $1,062,606 | $1,192,695 | $1,335,292 | $1,491,517 | |
Change in Working Capital | ($136,883) | ($15,738) | ($17,257) | ($11,686) | ($20,028) | |
Plus Depreciation | $73,000 | $73,000 | $73,000 | $73,000 | $73,000 | |
Plus Amortization | $0 | $0 | $0 | $0 | $0 | |
Fixed Assets | ($365,000) | $0 | $0 | $0 | $0 | |
Intangible Assets | $0 | $0 | $0 | $0 | $0 | |
Cash from Equity | $0 | $0 | $0 | $0 | $0 | |
Cash from Debt financing | $515,000 | $0 | $0 | $0 | ($515,000) | |
Cash at Beginning of Period | $0 | $1,030,108 | $2,149,975 | $3,398,413 | $4,795,019 | |
A taxi service business plan is a document that outlines the strategies you have developed to start and/or grow your taxi service business. Among other things, it details information about your industry, customers and competitors to help ensure your company is positioned properly to succeed. Your taxi service business plan also assesses how much funding you will need to grow your business and proves, via your financial forecasts, why the business is viable.
A business plan is required if you are seeking funding for your taxi service business. Investors and lenders will review your plan to ensure it meets their criteria before providing you with capital. In addition, a taxi service business plan helps you and your team stay focused. It documents the strategies you must follow and gives you financial projections you should strive to achieve and against which you can judge your performance.
Download our Taxi Service Business Plan PDF to help guide you as you create your business plan for your own taxi service business.
Remember when you requested for security and assistance from the authority regarding the use of public roads because you were going to hold a procession, probably because it was fiesta and you happened to be one of the organizers, and you were assigned in the traffic management? So you go out to the authority. But before they would approve you, they asked you something, something called transport management plan. And then you returned home scratching your hair bothered with the question – what is a transport management plan?
Size: A4, US
To understand what transport management plan template is, one just have to think about making an itinerary template. And what is an itinerary? An itinerary is about how one intends to travel from one place to another. It is a systematic way of reaching one’s destination. But this is not just the word we hear or mention in a group of friends. We are actually referring to itinerary as a document – a document that describes and demonstrates how one should reach his destination in an efficient, safe, most comfortable manner. That is what an itinerary is.
But transport management plan is more than that, it can also be understood as a traffic. And what is a traffic? In road system management, a traffic is the management of flows of the vehicles, including the pedestrians. Well,
So is transport management plan an itinerary or a traffic? It is neither, because it is both. Well it is close to traffic, but is not just traffic, because a traffic is sort of passive, it stays in one plays.
When Do You Need a Transport Management Plan?
All road designs actually have a transport management plan in them, supposedly. Before they can design that road, a great consideration of how traffic should flow has already been designed. But there are instances when doing a road project, that a transport management plan is just ignored. And when the road construction is done, it is only when people complain that the designers realize they forgot to consider including a transport management plan.
This means that transport management plan is a necessary thing in all road activities, in contrast to our usual understanding that a transport management plan is only for emergencies, and when there is a need for a change of route, or when there are road changes. But of course, the need for a transport management plan is very evident and strong when there are road changes or emergency.
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Here’s a scenario, imagine a world without transport planning, where going from one place to another has no route whatsoever. That is unimaginable now that we already have roads. But take your imagination to another level. Imagine piloting a plane, without any route. That is what if means without having a transport management plan. Our air traffic looks empty, there seems to be no pathways, but, there are actually lines in them for the plane to travel. There are actually invisible roads up above for the pilots to travel. Imagine if they did not exist?
If air traffic is complicated, just imagine in a plain ground, where there are no pathways. There is no system, there is no left lane, or right. Anywhere you go, it is always right (- no wrong, no left). That is what is meant by no transport planning. Imagine if they were cars, and not people. Well, a good example is the one you see on the malls, were kids ride bump cars.
Our dependence on transportation is actually a dependence on the availability of roads and highways. You can not have cars without roads. Well, you can. You can drive them in the desert. But that is not normal, that is extreme sports. But you can build roads without cars. People can still used them for whatever reasons.
We can discuss on which came first, the railway or the train. But that can only lead to a deadlock. The safest answer here is, the making of the railway is at co-terminus with the making of train. And that is what we call transport planning. The systematic consideration of the road, highway, railroad in the planning of using the vehicles.
But we take them for granted. We celebrate cars, we do not celebrate roads. We celebrate trains, we do not celebrate railways. We showcase planes, but we do not showcase airspace. That is our mentality, which needs some change. We only give credits to the one we are attached to, not to the ones attached to the ones we are attached to.
This is the importance of transport management planning. Our life would have been a chaotic one without it. It is the one that gives our transportation system systematic. The parody “if there is a wheel, there is a way” does not work that way. That will only lead to more chaos. It should be the other way around. But of course, we know that it is just a parody from the saying, “if there is a will, there is always a way.”
Emergency Works
The most frequent occurrence of transport management plan is when there is an emergency. That should not be the case as mentioned earlier. But if that is happening, that tells a lot about the people in the area. In some places, road planning has been given emphasis, the same emphasis given to designing a new vehicle. Transport management should have been planned before doing something else, and not after something else has happened. It should have been a design for preventing accidents, and not a cure – a resolution, after accidents.
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Security Concerns in Transport Management Plan
Public transport poses a higher risk to individuals. That is why we have traffic control systems. The use of a traffic sign not only is helpful in organizing the flow of the traffic, it also teaches us that if we have to be safe in the public highways, we need a certain system, we need some little organizing.
Imagine if there were no traffic signs. Imagine if there were no traffic enforces. Do you think drivers would have the patience to give way to other drivers. Is the zipper approach to public driving possible?
The security concerns in transport management plan should have been based from the principle that in all circumstances, the human life is above all else, the human life is above traffic, above vehicles. That in case of collision between a car and a human, the human life should be prioritized, should be protected. That should be the standpoint. So the traffic signs that we design are not actually for cars, it is for us to be protected from accidents.
Who Designs Transport Management Plan?
The only authorized persons for designing transport management plan should be engineers. But in cases, when there are already roads, and an institution might decide to use the public roads for some reason such as a procession, like a mardi gra, fiesta celebrations, et cetera, any one may just proposed his own plan.
Application and Approval Process
But it should need some approval from the authorities of the public highways. The purpose of which is, there are things to be considered when asking for re routes, or for using the roads, such things as safety concerns, security concerns, and correct placement and directions for the route.
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Considerations When Making a Transport Management Plan
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Other Considerations
Transport management plan is essential to our living. When we go to work, we need a transportation. When we go home, we need transportation. Without transportation, we are at a big loss. Despite having a transportation, our business industry is suffering for this lack of discipline. And as such, this has caused a lot of traffic. Traffic, as you can read in news reports, is one of the most common reasons why some business establishment is at lost.
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Traffic laws vary from one place to another. A traffic law may be the same for another, but it may not be applicable to all, such as which side of lane to occupy. Nevertheless, there are still the very basic universal laws.
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When planning for a transport management plan, always keep these basic traffic rules in mind. Always consider other obstacles in driving. We are not talking here of a circuit, a race track. We are talking here of a public highway, that is, a road to be used by all citizens. And by citizens, that includes, kids and the elderly alike who my have no knowledge whatsoever about traffic laws.
Text prompt
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Transport management plan is essential to our living. When we go to work, we need a transportation. When we go home, we need transportation. Without transportation, we are at a big loss. Despite having a transportation, our business industry is suffering for this lack of discipline. And as such, this has caused a lot of traffic.
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