Freight Car Rental business Business Plan

Name

Institutional Affiliation:
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Table of Contents

EXECUTIVE SUMMARY.............................................................................................................3

1.0. Introduction.......................................................................................................................4

1.1 The Company.........................................................................................................................5

1.2. The Services..........................................................................................................................5

1.3. The Target Customers..........................................................................................................5

1.4. Financial considerations.......................................................................................................6

1.5. SWOT ANALYSIS...............................................................................................................7

1.5.1. Strengths.........................................................................................................................7

1.5.2. Weaknesses...................................................................................................................7

1.5.3. Opportunities..................................................................................................................7

1.5.4. Threats .........................................................................................................................8

1.6. Human resource plan ..........................................................................................................8

Chapter 2..........................................................................................................................................9

2.0. INTRODUCTION................................................................................................................9

2.1 Mission...................................................................................................................................9
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2.2 Keys to success......................................................................................................................9

2.3 Objectives...............................................................................................................................9

2.4. Company summary.............................................................................................................10

2.5. Company ownership...........................................................................................................10

Chapter 3........................................................................................................................................11

3.0 FINANCIAL PLAN.............................................................................................................11

3.1. Freight activity....................................................................................................................11

3.1.1 Multimodal operation....................................................................................................11

3.1.2 Motor carrier services....................................................................................................11

3.1.3 Transportation plan........................................................................................................11

Works Cited...................................................................................................................................12
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EXECUTIVE SUMMARY

Freight Car Rental business is gaining popularity. This is catapulted by the growth of in-

ternational trade. With globalization, multinational corporations are entering new markets and lo-

cal companies are entering foreign markets in search of new markets. There has been an increase

in imports or raw materials and tools of trade for this organization. This is good for the Freight

Car Rental business and I feel that this is the right opportunity to start a Freight Car Rental busi-

ness . There is a lot to gain from and am convinced that the business will get the required fund-

ing. This paper ill look at the requirements that will be needed in order to start Freight Car Rental

business . The business is located in Dubai, UAE. As new businesses are started and the existing

businesses strive to enter into new markets, there is also the urge to get goods and services from

foreign places. It is therefore a good venture as the business is set to thrive and delve in a new

market.

Freight Car Rental business is a proposed name for this business and it is a sole propri-

etorship type of business. It has got three major departments that work independently, these de-

partments include; the security and transport department, the sales department and the accoun-

tancy department. All these departments are headed by the human resource manager who is an-

swerable to the sole proprietor of the business. Each department has a distinctive role as regards

to making the business grow and develop. Each department has a departmental head in charge of

each departments well being. In order for this business to grow it will have to invest in good

salesmanship and a thorough advertising policy.

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The sole proprietor is the owner of the business and there is little distinction between the

business and the owner. The owner collects the profits and pays up to the liabilities of the busi-

ness. He or she employs the human resource manger and is liable for making major decisions on

the business such as liquidation

1.0. Introduction
The mission of Freight Car Rental business Freight Company is to fulfill car rental busi-

ness services. This company will deal with special and cultural forwarders from UAE . Our con-

sultation services will be created under UAE coorperations. The business has adopted the culture

of the city whereby people like traveling from one place to the other with good cars hence the

company has purchased state of the art cars. This has offered the business an outstanding plat-

form over the other businesses so that it could be able to meet the demands of the people. In ad-

dition, the company will establish corporate responsibility programs so that it could be abke to

pay back to the community. The company will elso employ the locals covering ¾ of the ensite

business employee.

1.1 The Company

Freight Car Rental business Freight Company will be a partnership registered n the

Dubai for tax purposes. It is initiated by Anthony Thomas, a retired bank manager with Desmond

Keitany. Mr. Thomas has been a good group leader and managing finances for 12 years. The

company will be having a limited number of shareholders and has no plan to go public. It will

have its main office at Dubai, UAE. It has a plan for facilities such as conference room and of-

fice spaces. This company plan to begin its services in July.

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1.2. The Services

Freight Car Rental business provide exhaustive freight brokerage and inventory consul-

tation services. Car rental, hire, among other service. In addition, the business also offers trans-

portation rental services to company on transit among other multicarriege transport business on

hire or rental basis.

1.3. The Target Customers

Freight Car Rental business will be concerned with servicing only corporate and individ-

ual clients of Dubai. For these market segments, we have agreed on endorsements placing us on

position to services them. The profitability in these tree markets are expected to excel, bearing in

mind that he promise draws thousands of tourists every year.

The company target market will consist of mid –sized, independent and agent members

of forwarders located in the top major metropolitan areas that grows aggressively and in a con-

trolled manner. Agents will routinely handle shipment of 60-plusdollars at an average of 40% or

better gross profit. It will excel on handling expedited and critical freight movements providing

unique services, committed to their customers. It will exercise its values in the market place to

value trust integrity and personal involvement for heir success. It will have operations, market

and cash flow considerations that will be enhanced by aligning themselves with other competi-

tors.

1.4. Financial considerations

To start, it needs assets i.e. expenses and cash needed to support the running of the busi-

ness until revenues reach an expected limit. Company liabilities n most cases come from bank

loans from bank of commercial investment and already we have obtained private investors. The
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company expects to reach profitability in one and half years and does not face any serious cash

flow problems. We expect about 4500 per units per month will produce a break-even point. Ini-

tial capital required includes an expense and the money required to aid the business until it is in a

position to collect revenues enough to sustain its operations. However, the company liabilities

will come from renting services, taxation, labor, compliance with the law.

Credit facility will be obtained in the form of a short term and a long term loans. The short term

loan is meant to take care of the labor whereas the long term loan can take care of advertising

cost, the rent and the taxation on the business.

The business is expected to realize profitability in about two years. With the loans and

personal investment the business is not expected to endure constraints in the cash being injected

into the business. The profits to be realized per month will be infinite as it is yet to be established

how many clients can be reached in a particular duration of time.

1.5. SWOT ANALYSIS

1.5.1. Strengths

Freight Car Rental business Company can enjoy government support as the government

is at a better position to create an enabling environment for trade. Secondly, with enough credit

facility Freight Car Rental business Company is at a capable position to enjoy market control as

few firms offer a wide range of services as Freight Car Rental business Company will offer.

Thirdly the educated work force is a benefit to Freight Car Rental business Company as the

good extent of the population is computer literate. Fourthly, in the import and export business

profits or rather revenue is sure to achieve. Fifth, the business is able to expand to cover a wider
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geographical region and cover other cities such as Sydney due to the unique range of services

such as mobile offices.

1.5.2. Weaknesses

The initial capital required to start up this business is quite high as it require a large labor

force, a lot of cash for its operations, rent and taxation fees. When the initial capital is not ade-

quate then the business is bound to fail. Another weakness is the high cost of operation. When-

ever a business employs mobile offices it can reach many people at the expense of a high cost of

maintaining and running the offices.

1.5.3. Opportunities

The capital of UAE is located within an agricultural area and a commercialized center.

Dubai also houses as many as 3900 tourism based businesses. These are good for business as

there is a market ready for import and export trade and the raw materials are also available.
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1.5.4. Threats

Threats mainly arise from competition from existing import export businesses and avail-

ability of a large capital base to maintain and start up the business.

1.6. Human resource plan

Freight Car Rental business Company will be a business founded on the basis of offering

better services than the existing import export business and also to expand. To create this it is es-

sential to have competent sales personnel, accountants, and security and transport personnel.

The sales personnel will be entrusted with the duty to advertise the business and reach as

many clients. The accountants will have the duty to keep inventories and maintain records.

The security and transport personnel will have the duty to delivery and to pick import or export

goods.The employment of staff will be made on the basis of qualifications and competence.

However, incompetent employees shall be eliminated from work regardless of their skills. On

employment of new staff, the employees are trained on the fundamentals of the business that in-

clude brokering goods, how to maintain good customer relations. The payment of such employ-

ment will be made through the human resource manager who heads the labor force and answer-

able to the sole proprietor. These rules must be adhered to regardless of anything else.
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Chapter 2

2.0. INTRODUCTION

Despite the nature of your business, the agency of Best Car Hire is there to take care of all you

care needs and demands. Best Car Hire welcomes all individuals, corporate clients, and well as

other business organization with superb service and quality on each day you visit. Whenever

you need a compact care for quick day chores, for business transport, family trips, and the car

rentals from Best Car Hire are sure to take care of the corporate and individual clients to make

their business enjoyably and in a smooth way. Best Car Hire believes that clients are those peo-

ple whose car rental is there for the purpose of business demands or for private travel or trips.

Car rental is a service that deals with international or multinational import and export. It acts as

a link between the client and various transportation services. Car rental services relieves the

companies from multitude of carriers. The importance of this Freight Car Rental business is the

concern of the weight and size of the shipment and the duration taken for goods to the destina-

tion

2.1 Mission

It is the mission of Freight Car Rental business Freight Company to exhaustively ship

consultation and brokerage services. It will be concern with special and cultural freights. It is our

long-term goal that we become the preferred freight company. Freight Car Rental business un-

derstand that the freight shops and restaurant in the promise has to be attended to provide spe-

cial features for the tourists to be flooding every year.

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2.2 Keys to success

Provide unique services to our customer for them to realize that we are better able to

serve them competitively. Being close to our clients and create a long –term relationship.Ensure

that there is a comprehensive service experience for our clients. The company has a vision of en-

suring that the services offered to the client are of outstanding quality hence able to have a posi-

tive growth towards the success of the company. This is to inform all the clients that the com-

pany is more than ready to dedictate all its resources to ensure services are offered as the best

quality and on time. We have bought more cars hence the business is full of cars for hire, busi-

ness among others needs on demand.

2.3 Objectives

To achieve break-even by 11/2 years. To retain long term contracts with local freight

shops,To become the best importer in UAE. The company plans to to explore the current busi-

ness opportunities so that it could be able to meet the demands of the client in Dubai. Car hire

and rental business has been on the increase in the last three years in the UAE hence this busi-

ness gap will be able to meet the demands of the people based on quality and their interests.

2.4. Company summary

The company will be a limited liability partnership registered in Dubai, UAE for tax pur-

poses. Its founders are Mr. Anthony Thomas, retired bank manager with Desmond Keitany. They

are well versed with freighting for a number of years. This company has limited number of in-

vestors. It does not plan to be in public. Its main office will be found in Dubai, UAE. It contains

a conference room and office spaces (Stutely 82). The company services are to be run by July.
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The customers are expected to be small freight shops in Dubai and the start- up farms to be from

throughout the state.

2.5. Company ownership

The company will have private investors who will own 20% of the company shares.

Other to be owned by senior managers i.e. Mr.Ramond Thomas, 50%, Mr. Desmond Keytany,

30%. The other expected finances are to be gotten from bank loans.

Chapter 3

3.0 FINANCIAL PLAN

Below is an attached income and cash flow projection for 3 years. Finances are based on

receivables, loans and initial investments. Interest rate is 13.5%, cost of sale is 86.2% of gross

revenues and it is based on payment of 54.3% for transportation costs and 25% commission. The

financial plan follows the previous discussed market plan (McKeever 442). The clients have

been offered with various payment mode such as using online payment, using credit card, cash

via the office desk among other modes of payments.

3.1. Freight car rental activity

3.1.1 Multi-operation
It should work on the organizational results on research activities related to freight move-

ment, Freight organizational study in the first mode is underway. This mode will provide a tem-

plate for focusing on other modes, A study on techniques, equipments and strategies are being

looked at.
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3.1.2 Motor carrier services

 Motor carrier services have taken an approach to deliver better customer by assigning a

single agent to work with their transaction. The company also offers carrier service for

the companies or organizations that are not able to meet the needs or demands of their

client. The company has vehicles that offer this service for oil transportation as well as

other products from one place to the other, within and out of Dubai. In addition, the com-

pany also offer driver hires in the case that a company has no driver in case of emergency

among others.

3.1.3 Transportation plan

We are on with the planning partners on identifying and reviewing priorities that affect

transportation system, There is a need to secure funds for transportation in future, We continue to

locate good and reliable sources of data on volumes. The company also offer volume transporta-

tion of good and service withing and outside dubai city. The service are rendered to companies

that transport heavy and delicate products such as transportation of cars (Cars in transit).

Works Cited

Abrams, Rhonda and Eugine Kleiner. The successful business plan: Secrets and strategies. New

Jersey: The Planning Shop, 2003.

Ford, Brian R, Jay Bornstein and Patrick T Pruitt. Erns and Young business plan guide. London:

John Wiley and Sons, 2007.

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Harvard Business School. Creating a business plan: Expert solutions to everyday challenges.

Boston: Harvard Business School Press, 2007.

McKeever, Mike. How to write a business plan. Chicago: Nolo, 2010.

Stutely, Richard. The definitive business plan: The fast-track to intelligent business planning for

executives and entrepreneurs. New York: FT Press, 2002.

Young, Paul. Business plan. New York: Global Media, 2007.