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Assignment BSBMGT617A Name: Shish Pal Student No: 1368
Assignment BSBMGT617A Name: Shish Pal Student No: 1368
Assignment BSBMGT617A
Super Services Cabs is a taxi service serving Sydney, Parramatta with top quality
transportation service. The business has been formed as a Proprietary Company with
Nikhil and Nishant the shareholders.
The Super Services Cabs will specialize in providing customers with chauffeuring/taxi
services within 50 miles of its office location. The Company will charge its customers
on a per mile basis, or for longer trips on a flat fee basis. Additionally, the Super
Services Cabs will directly employ its staff of drivers, and the business will be able to
accommodate any pick up or delivery of a person to and from their destination at
anytime. Super Services Cabs will comply with all local, state, and federal laws
regarding the rendering of taxiing services.
Goal and Objective: The purpose of this business plan is to raise AUD 125,000 for the
development of Super Services Cabs by launching Gold Cabs in the market while
showcasing the expected financials and operations over the next three years. Super
Services Cabs is a Sydney based corporation that provides taxi and chauffeuring
services to customers in its targeted market. The Company was founded in 2009 by
Mr. Nikhil.
Gold Cabs:
Mission: The Super Services Cabs’ mission is to provide clean and affordable chauffer
travel for short distance trips within the target market. We hope to serve a repeat
clientele who demand--and can afford--reliable, secure service from drivers with
detailed knowledge of the area.
The Company’s taxi vehicles (which will either be a converted large four door sedan
or a town car) will operate in constant operation, and are expected to generate up to
AUD260 per day of vehicle fees (per vehicle). Super Services Cabs, Inc. will provide
services to both individuals and companies that have ongoing local transportation
needs. On busy evenings, the Super Services Cabs will travel among heavy populated
and frequented areas to drive individuals that are exiting clubs, restaurants, and
other nighttime venues. At least one of the Company’s vehicles will operate in this
capacity during the evening time hours. On the weekends, two of the Company’s
vehicles will operate in this capacity. As time progresses, the Company will
continually add more taxi drivers and vehicles to its fleet to further increase sales. In
the future, the business may seek to use lease financing for vehicles, which would
allow the Company to operate with a more stable balance sheet while concurrently
earning a higher return on its investment. At all times, the business will ensure that
each of its retained drivers is properly licensed to operate a taxi cab and that the
Company also maintains all proper insurance and licensure for the operation of this
business.
Key Performance Indicators: Presentation, Politeness and Booking would be the key
performance indicators for this business plan.
Performance review plan: The Founder expects that the business will aggressively
expand during the first three years of operation. Mr. Nikhil intends to implement
marketing campaigns that will effectively target individuals and companies with
ongoing transportation needs within the target market.
Stakeholders:
Equityshareholders: Nikhil & Nishant owns 50% each of the Super Services Cabs, Inc.
Other stakeholders:
Honey Customer Services. Honey Customer Services has been brought in to help
develop the call center and aid with the development of superior customer service
techniques. Super Cab Services will work with Rockwell International in the setup of
a cost efficient but productive call center.
SRC Media, Inc. Currently, Super Cab Services is under a verbal agreement with TCI
Media, Inc. to market its product and services through various cable networks.
Barwood, Inc. Barwood will be the company's source of used taxis when the need to
add to our fleet arises.
Performance target: If the business is very successful, Mr. Nikhil may seek to sell the
business to a third party for a significant earnings multiple. Most likely, the Company
will hire a qualified business broker to sell the business on behalf of the Super
Services Cabs Inc. Based on historical numbers, the business could fetch a sales
premium of up to 4 times earnings.
Regulation of the AUSTRALIA taxi industry varied from city to city. While almost all
cities had some form of licensing requirements, larger urban areas had the strictest
regulations. Sydney regulations focused on fares charged to customers, with rates
assigned to designated zones of the city.
Industry Analysis: Taxi operations provide over AUD3 billion dollars a year to the
general AUSTRALIA economy. The industry employs more than 37,000 people, and
provides annual payrolls that exceed AUD700 million dollars per year. The growth
rate of this industry has remained in step with that the general growth of the
country’s GDP. Management feels that by maintaining a local client base, the
Company can continue to generate revenues despite the current deleterious
economic conditions in the Australia. While the taxi cab business’ revenue is
predominately driven by business and travel; small companies can indeed very
productively compete with their larger counter-parts. This ability, of course, is
dependent upon their marketing strategies and the effectiveness of that marketing.
Marketing Plan
The Super Services Cabs intends to maintain an extensive marketing campaign that
will ensure maximum visibility for the business in its targeted market. Below is an
overview of the marketing strategies and objectives of the Company
Marketing Objectives
Establish relationships with local companies with ongoing transportation needs
within the targeted market.
Implement a local campaign with the Company’s targeted market via the use of
flyers, local newspaper advertisements, and word of mouth advertising.
FINANCIAL SOURCES
Mr. Nikhil is seeking to raise AUD 125,000 as a bank loan. The interest rate and loan
agreement are to be further discussed during negotiation. This business plan
assumes that the business will receive a 10 year loan with a 6% fixed interest rate.
Sources of Funds:
Financing
Equity Contributions
Management Investement 50,000
Super Services Cabs, Inc. will have an annual revenue growth rate of 8% per
year.
The Owner will acquire AUD125,000 of debt funds to develop the business.
The loan will have a 10 year term with a 6% interest rate.
The Company was founded by Mr. Nikhil and Mr. Nishant who have more than 8
years of experience in the transportation management industry. Through his
expertise, he would be able to bring the operations of the business to profitability
within its first year of operations.
The Board of Directors is hereby requested to approve the business plan enclosed
as annexure 1 for Gold Cabs to be introduced in this financial year.
The Board of Directors is further requested to approve the borrowing of AUD
125,000 from CGK Bank to implement the enclosed business plan.