Empress Transportation, LLC
BUSINESS PLAN Contact: Brenda Washington Email: email@example.com Phone: 404-437-0468 Address: 8202 Camphill Court, Fairburn, GA 30213
MISSION â€œEmpress Transportation provides comfortable van transportation to Georgia prison institutions for visitation of family and loved ones.â€?
TABLE OF CONTENTS 1.0 Executive Summary (4) 1.1 Introduction (4) 1.2 Objectives (5) 1.3 Keys to Success (5) 1.4 Company Summary (5) 1.5 Company Ownership (5) 1.6 Products and Services (5) 2.0 Starting Up Summary (6) 2.1 State Prison map of Georgia (7 & 8) 2.2 Vehicles (9) 2.3 Marketing (9) 2.4 Personnel (9) 3.0 Strategy & Analysis Summary (10) 3.1 Marketing Strategy (10) 3.2 Service Business Analysis (10) 3.3 Strengths, Opportunities, Weaknesses, and Threats Analysis (11) 4.0 Financial Summary (12) 4.1 Pro Forma Profit and Loss Statement (12) 4.2 Company Milestones (12) 4.3 Financial Assumptions Summary (13) 5.0 Exiting Strategies (14 & 15) 3
EXECUTIVE INTRODUCTION There are over 30 state prisons spread across the southern state of Georgia, and within each, hundreds of inmates with limited visitation rights, are eager to see the faces and hear the voices of loved ones. For many imprisoned, Saturdays and Sundays hold them together through a long week of loneliness, with no way of checking on their children or ensuring their spouses and parents are doing well. In the northern states, such as New York and New Jersey, public transportation is a benefit easily taken for granted. However, in Georgia, where public transportation is restricted mainly to metropolitan Atlanta, family members and loved ones without the transportation means of traveling to the outstretched rural locations of state prisons are living on hope and prayers to exercise their visitation rights. Brenda Washington has been in law enforcement for the past fifteen years and witnessed first-hand the negative impact on inmates who were forced to rely only upon brief phone calls. Spirits are low. Tempers raging. Depression sets in at an all-time high. Brenda felt compelled to bring a method of relief to Georgia, hence the founding of Empress Transportation, LLC. Within a few months, the van shuttle service based in Atlanta will be up and running with the primary function of driving individuals without their own means of transportation to the many prison institutions in the state. While the government has issued a plethora of excuses on why public transportation in Georgia remains minimum to none, it is perplexing as to why entrepreneurs havenâ€™t taken this niche service and exploded the market with various shuttle services. To-date, Empress Transportation has only a handful of competitors, and even those focus primarily on metro Atlanta youth and state prison facilities, instead of venturing far southâ€”to the cities of Albany and Valdosta for exampleâ€”as Empress Transportation intends to do. Every weekend of the year, their vehicles will board prebooked passengers at a public easily accessed location throughout Atlanta, and after announcing all safety policies, will commence its route, stopping at pre-destined institutions throughout its journey. In order to make this happen, the funding required to efficiently jumpstart this business is $75,000 for the purpose of purchasing equipment and funding operating necessities for the first three months. This one-time investment will benefit any investor due to a proposed accelerated repayment method and profit sharing on the back-end. Initiating with four buses capable of transporting fifteen passengers each, Empress Transportation will generate over $300,000 in revenue the first year and over $315,000 in all subsequent years. The new establishment is also expected to generate a net profit of 30-35% consistently each year. The star concept behind the Empress Transportation company is to provide a safe and affordable service to a high-demand need to the metro-Atlanta community. Brenda will hire friendly, competent, commercial licensed drivers and ensure that her buses remain clean, safe, and comfortable for any age. Over the years, Brenda plans to expand the business through its gained profits in order to dispatch additional routes until Atlanta civilians can travel throughout all of Georgia knowing they can depend upon Empress Transportation to get them to their loved one.
Empress Transportation, LLC has established the following goals for success with the new company:
Empress Transportation owner, Brenda Washington, has a strong reputation for being ethical, honest, and direct and wants her business to reflect a superior personal service. Her business expects its drivers, as well as customers, to abide by all prison institution visitation policies and procedures. She wants her customers to rely on her company to get them to their destination in a timely and comfortable manner, with stable and affordable pricing.
1. Achieve full capacity of four vans within the first three months of operation that are capable of shuttling fifteen passengers. 2. Achieve service revenue of $300,000 minimum in the first year, and maintain revenue of $320,000 or greater in the following three years. 3. Maintaining a minimum net profit of 15%.
Empress Transportation Mission Statement "Our mission is to provide a prompt, professional, and comfortable transportation experience for our eager customers. This mission will be carried out by all personnel working together to foster an organized sense of order, excitement, and wellgroomed professional image at the same time."
KEYS TO SUCCESS Professional Drivers and Transportation Any vehicle that will be transporting up to 15 passengers requires its driver to possess a Commercial Driver's License (CDL) rather than a Chauffeured Limousine Services driver’s license, a background check showing no felonies, less than (2) driving violations within the last three years, and zero DUIs. All purchased vehicles must be wellmaintained with appropriate mileage, any warranties, interior safety features within regulation, and overall interior comfort.
Empress Transportation will be a Monday—Sunday operating company that caters to all demographics of clients without reliable transportation in the metroAtlanta area of Georgia. Brenda will initially be in charge of all hiring and training, purchasing, and dispatching. She will hire an administrator to manage all of the pre-paid tickets in addition to providing customer service. Empress Transportation will also hire a minimum of four part-time commercial-licensed drivers who will operate on a hourly-rate compensation basis. Brenda will invest time and money into training the drivers to ensure they understand safety regulations and observe the company’s ethical and friendly standards so that all passengers receive the best experience possible, making it easier to turn them into long-term customers. COMPANY OWNERSHIP Empress Transportation will appropriately split ownership between Brenda and her investors if they are involved. If there are no investors, Brenda will possess 100% ownership and the company will be founded as a Limited Liability Corporation in the State of Georgia.
PRODUCTS AND SERVICES Disciplined Route Dispatches Prison institutions adhere to a strict visitation policy. Because intended destinations will be approximately three to four hours away from the Atlanta area, all routes must include direct departing and arriving schedules. Many passengers will be dropped off and given specific pick-up hours. Therefore all routes must allow for deviations such as traffic, restroom stops, police enforcer pullovers, and weather conditions.
Empress Transportation is a full-service shuttle business that will provide organized routes for passengers from the Atlanta area to specific prison institutions throughout Georgia. During the weekdays, the vans will be chartered out on a rental and as-needed basis to local businesses such as daycares and food catering businesses needing transportation for a block of hours. A breakdown of the business is as follows: 70% of the business will be dedicated to small business chartering from Monday—Friday. 30% of the business will be dedicated to mandatory Saturday and Sunday dispatches to prison institutions throughout Georgia.
STARTI START-UP COSTS 20-PASSENGER SHUTTLE VANS PURCHASE VEHICLES 6-MONTH MAINTENANCE ALLOWANCE LEGAL & SAFETY MODIFICATIONS TO VANS TOTAL VANS COSTS
$20,000 $ 3,000 $ 2,500 $25,500
ADMINISTRATIVE BUSINESS AND AUTO INSURANCE NEW LOCATION 6-MONTH RENT OFFICE DÉCOR AND FURNISHINGS TOTAL ADMINISTRATIVE
$12,000 $ 4,800 $ 2,800 $ 19,600
OPERATING CASH 6-MONTHS PAYROLL CASH 6-MONTHS UTILITIES UPFRONT INSURANCE, LEGAL, & ACCOUNTING COSTS TOTAL OPERATING COSTS
$16,200 $ 2,700 $ 5,000 $23,900
MARKETING WEBSITE WITH INITIAL SEO 3-MONTH ATLANTA RADIO PROMOTION OTHER MISC. TOTAL MARKETING COSTS
$ $ $ $
TOTAL START-UP COSTS
3,000 1,200 1,800 6,000
ING UP VEHICLES We plan to purchase four 15-passenger buses. All buses are equipped with seat belts and high back reclinable seats for comfort and safety. All Empress Transportation vans will be equipped with state-ofthe-art GPS and tracking systems, which will allow them to be tracked at all times.
MARKETING Our marketing strategy is a simple one: satisfied clients are our best marketing tool. When a client experiences the ease and comfort of our shuttle service, he or she is broadcasting our name and quality to the public. Most of our customers will be
bring. We will also offer discounts to the new customers who have been referred. There are plans for a lottery that will offer a free trip to participating customers. A customer would simply refer new customers to us, and we will place a card in a box for each customer he or she brings on. The more they bring, the more chances they have of winning the free trip.
PERSONNEL Drivers will be categorized as part-time employees, but Brenda will hire only those who demonstrate the personality qualities necessary for working under a professional work ethic with the willingness to grow
referrals from initial customers informed of our services before the start of the business.
in their careers as dedicated individuals to the companyâ€™s mission and values. Any and all No major advertising campaigns are anticipated for administrative staff must equally commit themselves the first year; instead we will utilize creativity to to the seriousness of the companyâ€™s objectives. spread the news of our new routes to many prison Administrators will handle the clerical, dispatch, institutions. Research has shown that word of and accounting functions of the business. Each new mouth is the best advertising for this type of hire with undergo a thorough background check and business. We will, however, run monthly incentive must obtain all certifications, licenses, and programs for customers to receive affordable bundle experience necessary to adequately perform his or packages for the month. We will also ask clients for her duties. Extended legal, accounting, marketing, referrals, and reward them with discounted or free and administrative tasks will be outsourced to services depending on the number of customers they affordable vendors within the Atlanta area. 9
STRATEGY & MARKETING STRATEGY Empress Transportation plans to use an aggressive online marketing campaign, free governmental publicity, and partnerships with other organizations participating in prison institution transportation in order to communicate with potential and existing customers. The company's website will be the primary tool used in the online marketing campaign. Initially, the website will have several sections including: about us, rates and routes, list and map of GA prison institutions, contact us, and frequently asked questions. Empress Transportation will also utilize social media sites such as Facebook to access potential customers.
SERVICE BUSINESS ANALYSIS The current economy has remained difficult over the past few years. However, because Empress Transportation will be entering an in-demand and niche area, the business anticipates strong revenues the first year. Georgia is an outstretched state with many locations unable to be reached through the assistance of public transportation. This, One customer well taken coupled with the affordable pricing point of our services will ensure the continued positive cash flow in any economic envi- care of can be more ronment.
valuable than $10,000 worth of advertising.
& ANALYSIS EMPRESS TRANSPORTATION SWOT ANALYSIS
The company intends to either secure a private loan from investors in the amount of $75,000 to be paid back on an 18-month payment plan. In this case the company will keep an LLC entity title. The alternative will be raising $75,000 from investors, in which case the company will incorporate and the investors will become shareholders of the corporation, and the principle plus interest due will be repaid upon 4-6 years when an exit strategy commences through future funding, a merger, or the sell of the company.
The enclosed financials have a number of assumptions: Revenues will grow at a minimum annual rate of 15%. We anticipate this increase to stay steady throughout the following year to account for the normal flow of new customers purchasing monthly bundle packages from our website. Estimates for sales revenue and growth are intentionally low, while anticipated expenses are exaggerated higher than expected to illustrate a worst case scenario.
We did not use Cost of Goods Sold in our calculations of net service sales, but
Important Financial Assumptions
included all related recurring expenses, such as payroll and leases, in the operating expenses area of the profit and loss table.
Although the focus of the business is the prison institution shuttle transportation, it is only 30% of the company’s services. The bulk of revenue must proceed from weekly chartered services. In order for the company to remain profitable, the business must obtain customers interested in chartered services. Instead of projecting monthly revenue goals for chartered services, the company will set quarter projections to reach the annual sales presented.
EMPRESS TRANSPORTATION EXITING STRATEGIES