Yolvalda Jones Week 5 IP Lady Aries Express Business Plan

LADY ARIES EXPRESS BUSINESS PLAN 1

Lady Aries Express Business Plan

Yolvalda N. Jones

American InterContinental University


Table of Contents

Executive Summary…………………………………………………………………3

Business Description………………………………………………………………...3

Definition of the Market…………………………………………………………….4

Description of proposed products or services………………………………………5

Organization and Management description…………………………………………6

Marketing Strategy………………………………………………………………….10

Financial Management………………………………………………………………12

Reference Page………………………………………………………………………14

Appendixes………………………………………………………………………….15


Executive Summary

Lady Aries Express is a trucking company that will be based out of Houston Texas. Lady

Aries Express primary goal is providing empty trucks that are available to haul either full truck

loads or less than truck freight material all across the United States and Canada. Lady Aries

Express with contract with brokers and companies on a contract basis, and hire other owner

operators own as contract employees as well to help fill the gap in the freight and logistics

market. Lady Aries Express will provide freight hauling delivery and pick/up of products from

air cargo (Planes), Ports (Ships), Train (Rail), Warehouse, and Manufacturing Plants throughout

the Unites States and Canada. Lady Aries Express will deliver freight by the truckloads in a safe

and timely manner in accordance with all D. O. T. (Department of Transportation) rules.

Business Description

According to IBISWorld (2016), “The industry is characterized by low concentration,

with owner-operators accounting for over 90.0% of industry companies. With high levels of

fragmentation, industry operators experience intense price competition and generally earn low

profit margins. In 2016, the average industry profit margin is estimated to account for 7.1% of

industry revenue, up from 4.8% in 2011. Industry operators have historically passed on increased

fuel costs to consumers via fuel surcharges, but diesel prices have fallen steadily since 2013.

This has resulted in higher profit margins but lower revenue growth over the five-year period.

With relatively healthy profit margins, industry participants have been forced to offer

competitive wages and benefits to draw in and retain the best employees. As a result, IBISWorld

forecasts that total wages will increase at an annualized rate of 4.0% to about $48.5 billion in the

five years to 2016”. Revenue (in current dollars) for US railroads, trucking, and water


transportation services, all major indicators for freight forwarding, is forecast to grow at an

annual compounded rate of 5 percent between 2015 and 2019. (Hoovers, 2015)

Lady Aries Express CEO currently holds a Commercial Driver’s License with hazmat

and passenger endorsements. Lady Aries Express CEO is also TSA (Transportation Security

Administration) Registered and has clearance to ship and pick/up at airports throughout the

United States. Lady Aries Express CEO also has a TWIC (Transportation Workers Identification

Card) which allows access to area ports throughout the United States. The CEO of Lady Aries

Express has 17 years of over the road driver experience throughout the United States and

Canada. The CEO of Lady Aries Express also holds an Associate’s Degree in Business

Management focus on Entrepreneurship, and she currently attends AIU seeking her Bachelors

graduating in March of 2017. The CEO has a grade point average of 3.8 and is a Dean’s List

Student each semester.

Lady Aries Express is an Entrepreneurial Business is run by CEO Yolvalda Jones and the

business is seeking start/up funding from investors to get this business started. Lady Aries

Express will need funding to purchase trucking equipment and trailer to start the business and

purchase the required licensing and registration with insurance on the start/up truck and Yolvalda

will operate the first truck and hire others own that have their own equipment.

Definition of Market

Our Services

Lady Aries Express will offer on-time delivery to customers by moving their products and

goods from one state to another in a safe and timely manner. I want Lady Aries Express to be

one of the leaders in the market when it comes to freight delivery and customer service. The

services Lady Aries Express Offers listed below;


24/7 Dispatch

Dry Van, Refrigerated, Flatbed

Quality Service

Licensed Drivers

On-Time Service Pick/up - Delivery

Accurate Delivery records

Great Communication

Problem Solving

Reliable Equipment

Licensed / Bonded

Description of Service

Our Vision Statement

Lady Aries Express Vision is to be one of the greatest choicest when it comes to choosing a

company to transport any load across the United States and Canada.

Our Mission Statement

Lady Aries Express mission is to be recognized as one of the best in the transportation and

logistics industry when it comes to on-time and safe delivery of products and goods throughout

the United States of America and Canada.

Business Structure

Lady Aries Express business structure will be that of a LLC (Limited Liability Corporation), this

will be done to protect the personal assets of Lady Aries Express and this will allow for

flexibility. Lady Aries Express will hire other contract drivers to work under the business as well

and will form a contract with the other drivers and provide them with a 1099 Tax form each year.


To keep Lady Aries Express in the top of the transportation and logistics market the business will

need to hire the following for the new Texas based business

Chief Operating Officer (Owner)

Drivers (Contract Employees)

Accountant

Administrator and HR Manager

Transportation and Logistics Manager

Business Developer

Organization and Management Description

Chief Operating Officer (Owner)

Owner will provide direction of Lady Aries Express Business

Day to day business responsibilities

Will lead to organizations strategy’s’ and implement the business vision, mission, and

plan

Coordinate will clients and finalize sales

Locate potential clients and sign contracts

Analyze the business on a monthly basis to evaluate success

Finalize checks and business forms for Lady Aries Express

Drivers (Contract Employees)

Load and unload cargo

Keep adequate logbooks and comply with federal regulations and guidelines


Keep daily logs of truck inspections and any problems that they find must be fixed

immediately and communicated to dispatch.

Communicate with the transport and logistics manager each time you pick/up and

delivery a load.

Keep all bill of lading forms and copies of MSDS (Material Safety Data Sheets) as well

as logbooks forms to mail in to dispatch via any FedEx or UPS shipping.

Comply with all Federal Motor Carrier Safety guidelines weight, routes, size, parking,

and rest periods and locations.

Report all accidents and incidents to your dispatch as well as the proper authority’s

including Chem Trec if necessary.

Accountant

Prepare financial statement, reports, budgets for Lady Aries Express Business.

Provide all departments with the correct forms for their department, market research,

company analysis, etc.

Manage financial systems and policies for Lady Aries Express.

Prepare all the financial tractions for Lady Aries Express

Ensure that all transactions are being handled lawfully and comply with taxation

legislation.

Will serve as the internal auditor at Lady Aries Express.

Administrator and HR Manager

Will handle the running of HR and administration task for Lady Aries Express on a daily

basis.


Will be in charge of the hiring process including recruiting for different department new

hires.

Will be in charge of new staff training and job placement within the department at lady

Aries Express.

Will handle travel arrangements for Lady Aries Express meetings, and new hires, as well

appointment arrangements.

Transportation and Logistics Manager

Coordinates drivers, vehicles, loads and journeys

operates IT systems

negotiates and agrees to contracts

develops and confirms schedules

plans for and negotiates technical difficulties

prepares paperwork for regulatory bodies

liaises and manages staff

implements health and safety standards

Plans routes and load scheduling for multi-drop deliveries.

Books in deliveries and liaises with customers.

Allocates and records resources and movements on the transport planning system.

Ensures all partners in the supply chain are working effectively and efficiently to ensure

smooth operations.

Communicates effectively with clients and responds to their requirements.


Directs all transportation activities.

Develops transportation relationships.

Monitors transport costs.

Negotiates and bargains transportation prices.

Deals with the effects of congestion.

Confronts climate change issues by implementing transport strategies and monitoring an

organization’s carbon footprint.

(ProfitVenture.com 2015)

Business Developer

Identifies, prioritizes, and reaches out to new partners, and business opportunities et al

Identifies development opportunities; follows up on development leads and contacts;

participates in the structuring and financing of projects; assures the completion of

development projects.

Responsible for supervising implementation, advocate for the customer’s needs, and

communicate with clients

Develops, executes and evaluates new plans for expanding increase sales

Documents all customer contact and information.

Represents the company in strategic meetings

Helps increase sales and growth for the company

(ProfitVenture.com 2015)


Marketing Strategy

Lady Aries Express will hire a business consultant to help the company conduct a SWOT

Analysis, this will then lead our company in the right direction when it comes to defining our

strengths, weakness, opportunities, and threats.

Definition of the Market

Strength

Lady Aries Express strengths will include the company’s supply chain, cost advantage,

size advantage, overall customer loyalty among the domestic players in the market.

Weakness

Lady Aries Express weakness can be a lack of financing, the cost structure of the

company, and it may depend on how the company is gaining ground in the industry.

Opportunities

Lady Aries Express opportunities according to IBISWorld (2016), “The industrial

production index reflects the health of the manufacturing sector; therefore, an increase in

the index represents growth in manufacturing output. The manufacturing sector is the

largest user of industry services. Consequently, as manufacturing output increases,

demand for long-distance freight trucking increases. The industrial production index is

expected to increase in 2016, representing a potential opportunity for the industry”.

Threat

Lady Aries Express threats could be as followed Industry operators often implement

surcharges to mitigate fluctuations in the price of fuel. While demand for industry

services may decline due to rising prices, industry revenue increases in the short term

when operators implement additional fuel surcharges. However, in the long run, a decline


in diesel prices decreases costs and increases profit margins while lowering revenue. The

price of diesel is expected to remain unchanged in 2016, but its volatility poses a

potential threat to the industry. IBISWorld (2016)

Market Trends

The Department of Commerce reported that shipments of manufactured durable goods rose in

April to $22.7 billion. The amount being shipped has increased four of the last five months, as

companies continue to add to their inventories. Inventory levels for manufactured durable goods

increased 0.3% in April to reach a record $364.1 billion.

Target Market

The target market for Lady Aries Express will be any delivery service / broker that needs freight

to be pick/up or delivered to a specific area in the United States and Canada. Lady Aries Express

is licensed to handle both intra- State and Inter- State loads and we will work all over the United

States as over the road truck drivers. The industry’s that Lady Aries Express will service are:

Manufacturers

Any Merchant (Air Cargo, Port, Rail, Warehouse)

Construction Companies

Small Business

Oil and Gas Industry

The Lumber Industry

Competitive Advantage

Overall, the Freight Forwarding Brokerages and Agencies industry has a high level of


competition. Companies in the industry not only compete against one another, but they face

competition from shippers' in-house operations. IBISWorld, (2016)

Internal competition

An increasing number of industry operators are emphasizing customer service as an integral

function of their supply chain management processes. This growing attention to service has led

to innovation within the tracking portion of the business. Customers inquire as to the status of

their shipment; in response, industry operators have innovated new ways for customers to track

their package, including online freight tracking, which provides a real-time location and

estimated delivery date. IBISWorld, (2016)

External competition

For the most part, external competition stems from in-house operations of major shippers. While

this is not a major threat at the moment, this threat could increase as global networks grow and

consolidation continues. For example, major player United Postal Service is not only one of the

largest freight forwarders, but also the world's largest package delivery company. UPS's ability

to gain considerable market share in both industries highlights the growing threat of external

competition. IBISWorld, (2016)

Financial Management

Financial Projections and Costing

Fee for LLC in Houston, Texas $1200.00

Budget for Liability Insurance, permits and License $3000.00

New office space with big truck parking $45,000


Financing for Trucks $100,000

Accounting software, CRM software and payroll Software $3000.00

New Office Equipment and furniture $6000.00

Phone, Utilities, Electric $4000.00

First 3 months of operational cost to pay employees, and bills $38,000

Advertisement $2,000

Business Website $ 500

After Lady Aries Express has conducted their research and feasibility studies the company will need about $205,000 start-up cost to get the business started in Houston, Texas.

IBISWorld, May 2016. IBISWorld iExpert Industry Summary 48412. Long-Distance Freight

Trucking in the US. Retrieved from

http://clients1.ibisworld.com.proxy.cecybrary.com/reports/us/iexpert/default.aspx?entid=1150

http://clients1.ibisworld.com.proxy.cecybrary.com/reports/us/industry/

competitivelandscape.aspx?entid=1209#MSC

http://clients1.ibisworld.com.proxy.cecybrary.com/reports/us/industry/competitivelandscape.aspx?entid=1209#MSC

http://clients1.ibisworld.com.proxy.cecybrary.com/reports/us/industry/competitivelandscape.aspx?entid=1209#MSC

http://clients1.ibisworld.com.proxy.cecybrary.com/reports/us/iexpert/default.aspx?entid=1150


ProfitableVenture.com, 2015. A Free Sample Trucking Company Business Plan Template

Retrieved from http://www.profitableventure.com/trucking-business-plan/

Genco, 2016. Transportation Industry Trends. Retrieved from

http://www.genco.com/Transportation-Articles/transportation-industry-trends.php

Appendixes

http://www.genco.com/Transportation-Articles/transportation-industry-trends.php

http://www.profitableventure.com/trucking-business-plan/
