British Columbia BC PNP Visa Business Concept

Business Concept XXXXX

XXXXX

XXXXX

This document has been prepared as part of the requirements to immigrate to British Columbia and will XXXXX serve as the Business Concept for a business that Mr. XXXXX an applicant for immigration under the BC Entrepreneur Program, will undertake upon his arrival in BC.

Harminder Pal Singh

XXXXX XXXXX XXXXX

Page 1 of 13

XXXXX

Table of Contents 1.

Description of business and its operations ........................................................................................................................................................... 3

2.

Competitive analysis ............................................................................................................................................................................................. 5

3.

Proposed investments and rationale for major investments ............................................................................................................................... 6

4.

Human resources and job creation ....................................................................................................................................................................... 7

5.

Assessment of owner’s skillset and experience in terms of business viability (transferability of skills) .............................................................. 8

6.

Owner’s proposed role in the business ............................................................................................................................................................... 10

7.

Due diligence activities........................................................................................................................................................................................ 11

8.

Key economic benefits and financial data .......................................................................................................................................................... 12

9.

Potential risk factors ........................................................................................................................................................................................... 13

XXXXX

Page 2 of 13

XXXXX

1. Description of business and its operations XXXXX is a start-up transportation business in Cranbrook town which is the largest urban center of The Regional District of East Kootenay (RDEK), a province in the south east corner of British Columbia, Canada. The major industries in this town of 20,000+ people include mining and forestry services, trades, and health care. British Columbia is Canada’s Pacific Gateway, the preferred gateway for Asian trade to North America and the world. Transportation is a key support for economic growth and development. That is why it is singled out for special focus in the BC Jobs Plan. More than any other sector, it serves the dual purpose of generating direct employment and underpinning job creation, development and progress throughout B.C.

XXXXX will be the 100% owner and a director of XXXXX. He has about two decades’ experience in logistics and transportation industry.

He has experience in managing entire Logistics Operations including development of strategies, encompassing vendor identification, development and analytical assessment. He has expertise in Logistics, Operations, New Setups, Profit Centre Operations, Business Development, Budgeting, Route Management, Team Management, etc. He also is knowledgeable about the legal formalities in movement of material & formalities. He has experience in managing entire Logistics Operations including development of strategies, encompassing vendor identification, development and analytical assessment.

He has achieved outstanding success in Operations entailing Human Resource, Legal Administration, MIS, Supply Chain Management, etc.

He is a keen planner with skills in monitoring core departmental deliverables for completion within established deadlines. He has demonstrated abilities in expanding the Market, Brand Building and generating New Business and targeting the potential customers. He is proficient in managing various process operations as per the set parameters & standards as well as experience of developing procedures for operational excellence.

XXXXX

Page 3 of 13

XXXXX

Services Provided The service provided by XXXXX will be: 

Contract Transportation



Freight Shipping



Heavy Haul Trucking



Scrap metal trucking



Dry Van Trucking



Automobile Transportation



Flat Deck Trucking



Customized Transportation

Market Entry Strategy Singh Transportation will adopt the following strategies to enter the transportation and logistics market in British Columbia: 

Penetrative Pricing policy: The company will initially adopt a penetrative pricing strategy without compromise on the quality of services provided; to gain entry into the market.



Excellent customer support: The company will provide top-notch customer support before, during and after the service to enable clients to know about the services offered, help them with information during the transport etc.



Service customization: The company will also provide customized transportation services for specific industries and companies in need of the same. For example; railway express delivery.



Complete Transparency: Customers want full transparency into where their delivery is at all times. These days, the location of a package is as interconnected as the social network. Hence, the company will provide complete transparency in transit with real time location tracking.



Innovative Technology: The Company will adopt innovative technology solutions to provide top-class services to its clients. For example; it will install customized software packages that enable route optimization, real-time tracking, productivity management, on-board computer and mobile device systems etc.

XXXXX

Page 4 of 13

XXXXX

2. Competitive analysis The following are a few of the trucking and transport companies in the region which are a competition to XXXXX: 

Fox’s Transport



Main road East Kootenay Contracting LP



Sunrise Transport Ltd.



Manitoulin Transport

The company’s main competitive advantages are: 

Transparency in transit



Customized services



Penetrative pricing



Innovative Technology

XXXXX will have a competitive edge over the above companies since it will bring in the knowledge and experience of Mr. XXXXX who is well versed in this business line.

XXXXX

Page 5 of 13

XXXXX

3. Proposed investments and rationale for major investments Mr. XXXXX will invest C$500,000 into the start-up as a direct capital investment. This will cover the company’s substantial start-up costs.

Start-up Costs Start-up Expenses Insurance & Permits Professional & Legal Rent & Utilities Salaries Repairs & Maintenance Fuel Costs Admin Costs Marketing Total Expenses

Amounts in CAD 15,000 2,500 42,000 75,000 5,000 25,000 5,000 12,500 182,000

Start-up Expenses 3%

7%

8%

1%

Insurance & Permits Professional & Legal

14% 23% 3%

Rent & Utilities Salaries Repairs & Maintenance Fuel Costs Admin Costs

Start-up Assets Start-up Inventory New Equipment Leasehold Improvements Start-up Other Current Assets Total Assets

Marketing

41%

4,000 240,000 4,000 70,000 318,000

Start-up Assets 1% 22%

Total Requirements

Start-up Inventory

500,000

New Equipment

1%

Leasehold Improvements Start-up Other Current Assets

76%

XXXXX

Page 6 of 13

XXXXX

4. Human resources and job creation XXXXX will recruit the locals in the region since it benefits them as well as the business. By providing employment to the locals, the business contributes to the economy. At the same time, it is beneficial to recruit the locals, since they know the region, the customer buying patterns, demographics etc. and can give valuable inputs to the business operations.

XXXXX

Particulars Owner Salary per person Total Drivers Salary per person Total Admin Staff Salary per person Total

Year 1 1 50,000 50,000 3 40,000 120,000 1 30,000 30,000

Year 2 1 52,500 52,500 3 42,000 126,000 1 31,500 31,500

Year 3 1 55,125 55,125 4 44,100 176,400 1 33,075 33,075

Year 4 1 57,881 57,881 4 46,305 185,220 1 34,729 34,729

Amount in CAD Year 5 1 60,775 60,775 5 48,620 243,101 1 36,465 36,465

Total Manpower Total Manpower Cost

5 200,000

5 210,000

6 264,600

6 277,830

7 340,342

Page 7 of 13

XXXXX

5. Assessment of owner’s skillset and experience in terms of business viability (transferability of skills) XXXXX is a visionary. He is a dynamic, process oriented and result-minded executive noted as an Expert Manager and motivational leader bringing in a rare level business acumen and record of achievements developed over a 20-year career. He is currently associated with DRS Logistics Pvt. Limited as Head – Operations. & Regional Head. He has a Bachelor of Arts degree from Delhi University and a Diploma in System Application from NIIT, Delhi.

XXXXX is growth and mission-focused; has expert knowledge in Logistics, Operations, New Setups, Profit Centre Operations, Business Development, Budgeting, Route Management, Team Management, etc. He has achieved outstanding success in Operations entailing Human Resource, Legal Administration, MIS, Supply Chain Management, etc. He is a keen planner with skills in monitoring core departmental deliverables for completion within established deadlines. He has demonstrated abilities in expanding the Market, Brand Building and generating New Business and targeting the potential customers. He is proficient in managing various process operations as per the set parameters & standards as well as experience of developing procedures for operational excellence.

He possesses in-depth knowledge of Central & State Government Rules & Regulations regarding movement of material & formalities. He has experience in managing entire Logistics Operations including development of strategies, encompassing vendor identification, development and analytical assessment. He has excellent Interpersonal, Communication and Organizational Skills with proven abilities in Team Management, Customer Relationship Management and Planning.

His core competencies include Strategic Planning, Sales & Marketing, Operations Management, Customer Relationship Management, Business Development, Team Management, Vendor Development / Management, Fleet Management, Human Resource, Supply Chain

XXXXX

Page 8 of 13

XXXXX Management, Logistics, Inventory Control, Finance & Accounts, Warehousing, Distribution Management, Business Development, Credit Control, MIS, Brand Building, Product Promotion and Route Planning.

XXXXX is eligible to apply for British Columbia's entrepreneur immigration program as he meets all of the following requirements:

XXXXX



Business experience as an owner and a manager



Commercially viable business proposition that will contribute significantly to the local economy



Willing to invest C$500,000 from his personal net worth (well above the minimum eligible amount of C$200,000)



100% ownership in the proposed business



Proposed business will create more than one new job for Canadian citizens or permanent residents



Actively involved in the daily management, planning, direction and control of the proposed business in BC

Page 9 of 13

XXXXX

6. Owner’s proposed role in the business Mr. XXXXX will be the 100% owner of the business and will be responsible for the overall monitoring and growth of the business. He will be in charge of customer acquisition, networking within the industry and in the region, taking care of daily operations, recruitment of skilled employees and training them, and marketing. In this role he will be responsible for implementing the short and long-term business plans. He will be driving the business towards achievement of its goals.

He will personally monitor all sales and all customer service interactions, transport monitoring and management, demand and supply analysis, product creativity and employee motivation. Mr. XXXXX will be responsible for business development, customer acquisition, retention, etc. He will actively participate in local business and trade associations, in the chambers of commerce and in other local business/trade activities.

His other job responsibilities will include:

XXXXX



Strategic planning



Customer acquisition



Financial management



Marketing



Networking

Page 10 of 13

XXXXX

7. Due diligence activities The following Due Diligence Activities have been carried out by the business consultants:

XXXXX



Meeting with similar service providers to evaluate market opportunities



Market research covering the full scope of the industry in British Columbia



Competitor analysis



SWOT analysis



Research on regulatory requirements, licensing, safety and insurance



Research on requirements for BC entrepreneurs



Research on program requirements

Page 11 of 13

XXXXX

8. Key economic benefits and financial data Key Economic Benefits The key economic benefits to the country from this business would be: 

Employment positions for at least five staff members over the next three years



Cumulative income taxes of C$452,000+ over the next five years



Cumulative payroll taxes of more than C$124,000+ over the next five years



Boost for the local and regional economy



Revenue generation of C$5 million+ over the next five years, leading to increased economic activity in the locality and the region

Key Financial Indicators $2,000,000 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0

Year 1

Year 2

Year 3

Year 4

Year 5

Sales

$500,000

$625,000

$843,750

$1,223,438

$1,896,328

Gross Profit

$320,000

$426,000

$571,950

$904,298

$1,451,439

EBITDA

$36,800

$111,515

$217,445

$494,754

$947,904

Taxes Incurred

$9,200

$27,879

$54,361

$123,689

$236,976

Net Profit

$27,600

$83,636

$163,083

$371,066

$710,928

Sales

XXXXX

Gross Profit

EBITDA

Taxes Incurred

Net Profit

Page 12 of 13

XXXXX

9. Potential risk factors Mr. XXXXX will come up with a risk mitigation strategy based on his experience, inputs from the locals as well as advice from experts in the field. A few of the risks and mitigation strategies are as below: Potential Risk

Risk Mitigation Strategy

New to the market

The company will ensure that through its marketing and promotions, awareness is created about the company, its brand and the services it provides. The management will also network within the industry extensively to establish contacts and get referrals. The company will adopt a penetrative pricing strategy to beat competition and penetrate the transportation and trucking market in the region.

Inappropriate location

The company will do a thorough research of the localities to select the most apt location for the company’s office. In the selection process, criteria like population demographics, proximity to key customers and competitors, proximity to allied businesses and services, visibility of the office, space for fleet parking, warehouse availability to prospective customers, image and history of the locality, zoning restrictions, building infrastructure etc. will be considered.

Fleet Safety

The company will adopt best practices to ensure fleet safety. It will improve vehicle maintenance process, train employees in defensive driving, monitor driver behaviour, create safety incentive programs, start and continue the safety conversation etc.

Fuel cost increases

The company will absorb the fuel cost increases if possible and pass it on especially in cases like customized transportation etc.

Risk from existing competition

Providing top-quality service as well as providing customization options.

Accidents and Illness of staff

The working conditions for staff will be safe, healthy and hygienic. The drivers will be trained in defensive driving and safety etc.

XXXXX

Page 13 of 13