I. Executive Summary
This Section's Contents
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Business Overview
[Company Name] is a new cargo van delivery service located in [Location]. The company provides convenient and affordable delivery services for local businesses that do not have the means to deliver their products themselves. [Company Name] will primarily serve local retail establishments but will occasionally partner with other industries such as the medical or food and beverage industries.
[Company Name] offers several services including two-day delivery, same-day delivery, multi-stop deliveries, last-mile delivery, and special handling requests. With speedy service and a dedication to client satisfaction, [Company Name] is bound to become the top cargo van delivery service in the area.
Products Served
[Company Name] will deliver packages, supplies, and other cargo from local companies to their nearby destinations. Packages can be of any size and weight, as long as they fit safely into the cargo van. The company can transport nearly any product except food products and chemicals.
[Company Name] offers a variety of shipping methods, from economy to same-day delivery. The company also handles special requests such as collecting signatures or delivering at a particular time of day. Clients who use [Company Name]’s services on a frequent basis may be eligible for monthly rates and volume discounts.
Customer Focus
[Company Name] will primarily serve businesses and industries in or near [Location]. The company expects to primarily work with retail establishments that need to ship their products to local customers. However, [Company Name] is open to serving other industries such as the medical and food and beverage industries. Due to the limited scale of the current business, both the clients and their destinations/customers must be located near [Location].
Management Team
[Company Name] is owned and run by [Founder’s Name]. [Founder’s Name] has worked for national delivery services for [X] years, serving as a driver, manager, and trainer throughout his career. He has found the work highly rewarding but noticed that national chains are often too expensive for many clients and lack the personal detail a local delivery company can provide. After conducting his market research, [Founder’s Name] is ready to launch his local delivery service that will meet the high demand for transporting goods for an affordable rate.
Success Factors
[Company Name] is qualified to succeed due to the following reasons:
- The company will provide valuable delivery services to local businesses and organizations.
- The management team has a track record of success and experience in the delivery service market.
- [Company Name] will provide a variety of quality delivery services that are catered to every business that partners with us.
Financial Highlights
[Company Name] is currently seeking $150,000 to launch. Specifically, these funds will be used as follows:
- Office design/build: $50,000
- Cargo van purchase and maintenance: $50,000
- Working capital: $50,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
