Logistics Business Plan Template
If you want to start a logistics business or expand your current logistics business, you need a business plan.
The following Logistics business plan template gives you the key elements to include in a winning Logistics business plan.
Logistics Business Plan Example
I. Executive Summary
Business Overview
[Company Name] is a new logistics company located in [location]. Our company aims to provide regional businesses with all their logistics needs. Some of the services we provide include warehousing, fulfillment, and shipping. We are open to serving any businesses within a 100-mile radius of [location], but primarily expect to work with the healthcare, agribusiness, and food and beverage industries.
Services
[Company Name] will provide numerous logistics services to retailers and businesses located within 100 miles of [location]. Some of these services include:
- Warehousing
- Inventory
- Order fulfillment and packaging
- Shipping and transportation services
- 24/7 customer service support
Customer Focus
[Company Name] will primarily service businesses within 100 miles of [location]. Their potential customers are the approximately 100,000 businesses and manufacturers within this region, giving us a large customer base to work with. Though we are open to working with most businesses, some of the industries we expect to serve the most include:
- Healthcare
- Agribusiness
- Chemical and Energy
- Food and Beverage
- Technology
Management Team
[Company Name] is headed by [Founder’s Name], who graduated from [University] with a degree in Business Administration. Prior to starting [Company Name], [Founder’s Name] worked as an operations manager at a freight logistics company for [X] years, where he was able to learn all aspects of the industry, including the operations (e.g., running day-to-day operations) and management (e.g., staffing, marketing, etc.) sides. His experience will be invaluable to the business.
Success Factors
[Company Name] is uniquely qualified to succeed for the following reasons:
- [Company Name] will focus primarily on the local region (about a 100-mile radius from [location]), which is currently underserved.
- We surveyed the target market and received extremely positive feedback saying that they explicitly want to make use of our services when launched.
- The U.S. has a robust business environment with a large number of businesses needing logistics services like ours.
- The management team has a track record of success in the logistics services industry.
Financial Highlights
[Company Name] is currently seeking $1,000,000 to launch. Specifically, these funds will be used as follows:
- Warehouse design/build: $500,000
- Vehicle purchase and maintenance: $200,000
- Equipment and supplies: $150,000
- Working capital: $150,000 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% |
II. Company Overview
Who is [Company Name]?
[Company Name] is a new logistics company located in [location]. We provide a wide range of essential logistics services, including warehousing, inventory management, and transportation. We are open to serving any businesses within a 100-mile radius of [location], but primarily expect to work with the healthcare, agribusiness, and food and beverage industries.
[Company Name] is headed by its founder, [Founder’s Name], who worked as an operations manager at a freight logistics company for [X] years. During his career, he was able to learn the ins and outs of the logistics industry, including the operations and management sides. Throughout his career, he noticed that the local region was underserved by other logistics companies. He aims to fill this gap by creating a more regional logistics business that serves local businesses.
[Company Name]’s History
[Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].
Upon incorporation, [Company Name] was able to achieve the following milestones:
- Found a business location and signed a Letter of Intent to lease it
- Developed the company’s name, logo, and website located at [website]
- Established the company as a limited liability company (LLC)
- Determined equipment and fixture requirements
- Began recruiting key employees
[Company Name]’s Products/Services
[Company Name] will provide numerous logistics services to retailers and businesses located within 100 miles of [location]. Some of these services include:
- Warehousing
- Inventory
- Supply chain management
- Order fulfillment and packaging
- Shipping and transportation services
III. Industry Analysis
The logistics industry has never been in higher demand. The pandemic has brought about a supply chain crisis, with retail establishments, grocery stores, restaurants, and many other industries still struggling to keep their inventory in stock and fulfill orders quickly. Due to market trends and the supply chain issues of the past few years, millions of people now realize the importance of having a good logistics team to help out their businesses. Therefore, it has never been a better or more crucial time to build a logistics business.
The logistics industry is enormous. According to Allied Market Research, the industry is projected to reach just under $13 billion in the next five years. Furthermore, the industry will see a compound annual growth rate of 6.5% during that time. And with the global supply chain issues, the demand for good logistics and improved supply chain services will not falter anytime soon.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the local businesses and industries located within a 100-mile radius of [location]. The area is home to more than 100,000 businesses but is still relatively underserved when it comes to logistics services.
Customer Segmentation
Though we are open to working with most businesses and industries, our market analysis shows that we will primarily work with the following segments:
- Healthcare industry: [Location] is home to one of the best healthcare systems in the country. Local hospitals currently depend on other logistics companies that are not local and do not cater to their unique needs. They require special handling of their materials and quick delivery to get essential products for testing and procedures. We can easily provide the local healthcare industry with these services.
- Agribusiness: [Location] consists of a large agribusiness that is essential to the nation’s food supply. This industry needs proper storage for food and equipment and quick shipping to prevent spoilage. Since this is such an important industry, we will work closely with local agribusinesses to provide them with all their logistics needs.
- Food and beverage industry: [Company Name] will also offer storage space and refrigeration to carry perishable and non-perishable food items for local food and beverage businesses.
V. Competitive Analysis
Direct & Indirect Competitors
The following logistics businesses offer extensive logistics services nationwide and therefore provide either direct or indirect competition to our business:
Mountainside Logistics
Mountainside Logistics serves the logistics needs of specific industries located in or near [location]. They provide warehousing, inventory management, and local shipping services. They also provide 24/7 customer service and aim to create long-lasting relationships with their customers.
Though Mountainside Logistics serves a similar demographic, they only work with a few industries: healthcare, chemical and energy, and technology. Since the only industry we compete for significantly is healthcare, we will still get significant business from industries they don’t serve.
Logistics USA
Logistics USA has been in the industry for [X] years, catering to various industries and businesses. They provide logistics services for numerous nationwide and local businesses, dominating a good chunk of the market. Some of the services they provide include warehousing, inventory management, same-day delivery, and international shipping.
Though Logistics USA is a large national competitor, many local businesses are looking for a more regional touch. They feel left behind and unvalued because they are smaller clients. We will work hard to develop long-lasting relationships with our customers so that they never feel unvalued.
Fulfill and Deliver Inc.
Fulfill and Deliver Inc. is one of the leading logistics providers in the country. They offer all the logistics services a business could need, from order fulfillment and inventory management to expedited shipping and delivery. For decades, Fulfill and Deliver Inc. has been the dominating logistics company, loved for its convenience and national presence.
Though they are a giant in the logistics industry, they are often criticized for a lack of customer service. Local businesses looking for a more personal and regional touch will be eager to switch to [Company Name].
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Location: [Company Name]’s business is local and will cater to regional businesses.
- Client-oriented service: [Company Name] will have 24/7 customer service and a strong sales team to fully cater to our clients needs.
- Management: [Founder’s Name] has been extremely successful working in the industry and will be able to use his previous experience to provide the best sales and customer service experience. His unique qualifications will serve customers in a much more sophisticated manner than [Company Name]’s competitors.
- Relationships: [Founder’s Name] knows many of the local leaders, business managers, and other influencers within [location]. With his [X] years of experience and good relationships with business leaders in the area, he will be able to develop an initial client base.
VI. Marketing Plan
The [Company Name] Brand
The [Company Name] brand will focus on the Company’s unique value proposition:
- Client-focused logistics services that treat each client individually and get the job done right the first time
- Service built on long-term relationships
- Thorough knowledge of our clients and their varying needs
Promotions Strategy
[Company Name] expects its target customers to be businesses operating within 100 miles of [location]. [The Company’s] marketing strategy to reach these businesses includes:
Website and Search Engine Optimization
[Company Name] will develop a professional website that showcases pictures of the warehouse and the services we provide. It will also invest in SEO so that the company’s website will appear at the top of search engine results.
Social Media
[Founder’s Name] will create the company’s social media accounts and invest in ads on all social media platforms. The company will use a targeted marketing strategy to appeal to our target demographics.
Publications
[Company Name] will announce its product launching several weeks in advance through publicity pieces in multiple newspapers and publications. Regular advertisements will run to maintain exposure to relevant markets.
Commuter Advertising
We will drive attention toward [Company Name] by renting billboard ad spaces along routes or highways that hold heavy traffic. Advertising on heavily traveled commute routes is an opportunity to alert large numbers of businesses of our opening.
Client Referral Programs
[Company Name] will create an aggressive client referral program that gives discounts to existing clients for every successful referral.
Direct Mail
[Company Name] will blanket businesses with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts and/or provide other enticements for people to use our services.
Pricing Strategy
[Company Name]’s pricing will be moderate, so customers feel they receive great value when working with us. Our customers can expect to receive quality services at a more affordable price than what they pay for larger logistics providers.
VII. Operations Plan
Functional Roles
In order to execute [Company Name]’s business model, the company needs to perform many functions, including the following:
Administrative Functions
- Bookkeeping
- Marketing
- Website and social media maintenance
- Provide customer service
- Hiring and training staff
- General maintenance functions
Inventory and Warehouse Functions
- Stock and organize products
- Fulfill and package incoming orders
- Count inventory often for accuracy
Transportation Functions
- Schedule deliveries and map out routes
- Load and unload trucks
- Deliver products to destinations
- Provide excellent customer service
Milestones
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is headed by [Founder’s Name], who graduated from [University] with a degree in Business Administration. Prior to starting [Company Name], [Founder’s Name] worked as an operations manager at a freight logistics company for [X] years, where he was able to learn all aspects of the industry, including the operations (e.g., running day-to-day operations) and management (e.g., staffing, marketing, etc.) sides. His experience will be invaluable to the business.
Hiring Plan
[Founder’s Name] will serve as the Chief Executive Officer of the company. In order to launch, it needs to hire the following personnel:
- Warehouse Manager
- Inventory Manager
- Administrative Assistants (2 to start)
- Chief Finance Officer
- Head of Marketing
- Transport Manager
- Drivers (6 to start)
- Inventory Associates (6 to start)
- Sales Representatives (3 to start)
IX. Financial Projections Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come primarily from the warehouse and transportation fees charged to our customers.
The major costs will consist of salaries, vehicle maintenance costs, and ongoing marketing expenditures.
Capital Requirements and Use of Funds
[Company Name] is currently seeking $1,000,000 to launch. Specifically, these funds will be used as follows:
- Warehouse design/build: $500,000
- Vehicle purchase and maintenance: $200,000
- Equipment and supplies: $150,000
- Working capital: $150,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of client contracts | Annually |
|---|---|
| FY 1 | 40 |
| FY 2 | 45 |
| FY 3 | 55 |
| FY 4 | 65 |
| FY 5 | 70 |
| Average Commission | 70% |
| Annual Lease ( per location) | $50,000 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
