Startup trucking company

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.Executive Summary ......................................................................................................... 1 1.1. Mission ................................................................................................................ 2 2. Company Summary .................................................................................................... 2 2.1. Company Ownership .......................................................................................... 3 2.1.1. Start-up Summary ....................................................................................... 3 2.2. Swot Analysis ..................................................................................................... 4 3. Services ....................................................................................................................... 5 4. Market Analysis Summary ......................................................................................... 5 4.1.1. Risks .................................................................................................................... 6 4.2. Market Segmentation .......................................................................................... 6 5. Strategy ....................................................................................................................... 6 5.1. Value Propositions .............................................................................................. 7 5.2. Competitive Edge................................................................................................ 7 5.3. Marketing Strategy.............................................................................................. 8 5.3.1. Pricing ......................................................................................................... 8 5.3.2. Marketing Plan ............................................................................................ 9 5.4. Sales Forecast...................................................................................................... 9 6. Management Summary ............................................................................................. 11 6.1. Personnel Plan ................................................................................................... 11 7. Finance ...................................................................................................................... 12 7.1. Significant Assumptions ................................................................................... 12 7.2. Break-even Analysis ......................................................................................... 13 7.3. Projected Profit and Loss .................................................................................. 14 7.4. Projected Cash Flow ......................................................................................... 16 7.5. Projected Balance Sheet .................................................................................... 17 7.6. Business Ratios………………………………………………………………..18

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1. Executive Summary
The Company
Ahpla Transport CC (AT) is a Cape Town based transport service business whose mission is to become an established and reputable trucking business, servicing South Africa and across the border. AT will focus mainly on transporting goods for long distance haulage.
Ahpla Transport CC is to be formed as a Close Corporation with Mr. Mario Tieras as the only member. AT wants to deliver a road freight services to companies that require transporting coal, iron ore and chrome. The business can also secure contracts from other companies requiring transportation services for delivery of goods.
AT plans to target blue chip companies right over the African continent by supplying trucks to the mining industry and petroleum industry if Africa.
The company will seek to provide these services in the timeliest manner and with an ongoing comprehensive quality control program to provide 100% customer satisfaction. The company's principal officer sees each contract as an agreement not between a business and its customers, but between partners that wish to create a close and mutually beneficial long-term relationship. This will help to provide greater long-term profits through referrals and repeat business. Services
The trucking industry provides transportation services for persons or companies looking to load and transport heavy goods or items in bulk. AT is in the process of securing a contract to transport coal, iron ore and chrome from Steelpoort to Britz. AT enables someone to make use of their trucks, in order to deliver products of any size.
These goods will be transported by Truck. It is a Side Tipper Freight Liner truck.
Management Team
There is only one owner in the business and he will make all the executive decisions. He has experience in transporting military equipment and other items for the military via air and road. The owner, Mario will be assisted by experienced drivers and administrators.
Financial Assistance
AT requires financial assistance of R25,234,783.00 to purchase 10x Side Tipper Trucks. A Financial Institution will be approached for a business loan over five years at an interest rate of approximately 11% per annum. The approximate loan repayment will be R548,665 per month.

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Own Contributions
The owner is able to make an own contribution of R150 000 in the form of fixed assets and cash.
Job Creation
Apart from the owner twenty three job opportunities will be created

1.1. Mission
The mission of AT is to be a leading black-owned transport company servicing clients throughout South Africa and across border, from its base in the Western Cape and to provide a top-quality service.




2. Company Summary
Ahpla Transport CC (AT) is a Cape Town based long distance trucking business whose mission is to become an established and reputable trucking business servicing the South African and Cross Border market. AT will focus mainly on transporting goods like Chrome/Coal etc from Steelpoort to Britz. The owner realises that this is a very competitive market and therefore relies on his good reputation for service delivery and competitive pricing of services.
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2.1. Company Ownership Ahpla Transport CC is to be formed as a Close Corporation. It will be owned by Mr. Mario Tieras who will have 100% membership in the business entity.


2.1.1. Start-up Summary
AT requires financial assistance of R19,447 533.00 to purchase 10x Side Tipper Trucks. A further R5,787,250 is needed for working capital
Side Tipper(Man) 40m³ side tip Interlink @ R1,944 753.36 each x 10 = R19,447 533.00
Working Capital (2 months working capital) R 5,787,250.00
TOTAL FINANCING REQUIRED R25,234,783.00


Own Contribution
The owner is able to make an own contribution of R150 000. Here is a breakdown if the amount:
Fixed Assets R 50 000
Cash R100 000
Total R150 000






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2.2. Swot Analysis
Strengths
 The owner has a viable contract  There is a large enough market in the immediate vicinity which should produce excellent returns for the owners  The owner prides himself in delivering a quality service  BEE Status should assist client securing additional work  Will employ experienced staff and provide training when need arise
Weaknesses
 Insufficient capital to develop business at a rapid pace  Lack of staff with managerial experience, should the business need to cater for a quick increase in demand

Opportunities
 The business will create job opportunities  The customer base can be increased, should other related markets be entered  Diversification and expansion of service offering  Tender opportunities for Historically Disadvantaged Individuals in line with governmental policies
Threats
 Possibility that there may be poor service delivery from staff  Bigger companies have stronger bargaining power and capital to undercut fee structure


Treatment for Threats & Weaknesses
 All staff will be strictly monitored and proper training provided. The importance of client service and customer care will be often explained to workers and monitored by management.
 Once the business is established and positive growth is evident, then an experienced transport manager will be employed.
 The lack of capital will be overcome by the application for financial assistance.
 Proper costing and pricing will be done on each project so as to negotiate a feasible price should undercutting takes place by bigger companies.

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3. Services
The trucking industry provides transportation services for companies looking to load and transport heavy items or long distance haulage. AT enables someone to make use of their trucks, in order to deliver products of any size. The business will provide this service from Steelpoort to Brits which is about 662km. The cargo that will be transported will be Chrome/Coal, Iron ore etc.
At a later stage, once the business is more established they will offer transportation services throughout South Africa for customers seeking reliable transportation services. The company will gradually seize its service offerings in the "across the border" market, and will specifically target customers who need prompt and reliable services. There is less competition in these markets; and the customers are less price sensitive, which will allow AT charging premium prices for its services.

4. Market Analysis Summary
AT has an opportunity to entrench its competitive position in the regional transportation market by selectively focusing its target market on the transportation Chrome/Coal, Iron ore etc. There is a growing demand for reliable transportation solutions in this customer segment.
AT is a business that has become necessary in today's fast-paced world. There are an increasing amount of big businesses that have become dependent on reliable and trustworthy services, which has created opportunities for SME's in the transport industry. There are many small businesses in the area that provide similar services to Big Business; each of these has a good client base, and a lucrative business. There is no doubt that there is room in the market for a highquality transportation business that can live up to its promises of quality service.
Our most important group of potential customers is executives in larger corporations, who have the responsibility of ensuring that their company's products arrive on time at the various destinations. These are marketing managers, general managers, and sales managers, sometimes charged with international focus and sometimes charged with market or even specific channel focus. They do not want to waste their time or risk their money looking for bargain information or questionable expertise. As they go into markets looking at new opportunities, they are very sensitive to risking their company's name and reputation.
AT will predominantly concentrate on transporting goods for long distance trips.
According to the Cape Town Yellow Pages, there are numerous companies providing different kinds of the trucking services. Major competitors for AT are those companies who have comparable truck fleets and are also targeting the heavy duty transportation industry.
Market research shows that customers in the food industry are price sensitive, and they value on-time deliveries, special handling capabilities, and less-than
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truckload orders. Customer referrals and carrier's reputation are believed to strongly influence the buying decision.

4.1.1. Risks
The company recognizes that it is subject to both market and industry risks. The two primary risks to the company are:
 Industry concentration risk. The company is mainly focused on Chrome/Coal, Iron Ore industry businesses in South Africa and Cross - Border. This position is favorable since the industry is fairly stable. Any slowdown in this production would have negative repercussions for AT. To mitigate this risk, the company is looking at diversifying its trucking business to include other industries as well.  Operational risk. AT recognizes the fact that there is an inherent risk in transporting cargo. Any damage to cargo may undermine the profitability of the company. To reduce this risk, the company maintains all necessary insurance.

4.2. Market Segmentation
There are several potential customer segments that we will provide our transportation services to. AT will provide this service initially from a Cape Town base and hope to expand from this base area to include the other regions in South Africa. The business will also make trips to other African States for the Contractor if requested.
AT will focus its marketing budget on selected industry niche in transporting goods for long distance trips. A narrow served market focus will help strengthen the entity’s reputation of a reliable transportation service provider and will generate favorable referrals. The company management believes that by increasing its truck fleet it can capture additional clients and provide better service to existing clients.
AT’s plan is in the process of getting a contract transporting chrome from Steelpoort to Britz.

5. Strategy
The strategy of AT is to consolidate its good customer and client service by making timely deliveries, hiring the best drivers and having a competitive pricing structure. The company's goal in the next five year is to become an independently-run business entity without having any contracted services. We would like to fully manage our trucking operation, from hiring drivers to sourcing
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business. The company's goal within the next five years is to operate a fullservice trucking business with a fleet of trucks.
Key components of our initial strategy can be summarized as follows:
 Expand fleet of trucks. The company is currently working to expand on its existing fleet of trucks. This will enable us to increase the number of customers we are able to serve.  Establish independent status. The company is currently operating under contract, but is working to become independent and manage its own operations, from sourcing to daily management.  Establish a complete trucking business. The company is currently working toward becoming a complete trucking business with a fleet of trucks which includes long-haul trucks. The management of the company has identified a good customer base which it can tap into once all the necessary resources have been acquired. This will enable the company to service areas outside its current domain and increase profit levels.

5.1. Value Propositions
Ahpla Transport CC offers the following advantages to customers.
 Quality Service. We provide our customers with courteous, prompt, and dependable service. The company will have a reputation for timely deliveries and the best drivers in the industry, and intends to build upon that.  Competitive rates. We will provide competitive rates for our customers because we have low cost inputs.  Package/Cargo handling. By maintaining dependable and safe equipment, we will ensure that there is no damage to customer's cargo.

5.2. Competitive Edge
The company will be well known among its clients for going that extra mile in the customer-service department. The company will differentiate itself through the courteousness and good people skills of the dispatchers and drivers, on time pick-ups and drop-offs, and drivers who are highly knowledgeable of the local and cross border areas. These efforts will generate good word of mouth among the targeted customer group. As the company grows, special efforts will be devoted to the customer service and training of the new employees. 'The customer is always right' will be the core underlying concept of the customer philosophy of Ahpla Transport CC.
The company's future marketing plans will be nationwide, emphasizing safe and reliable transportation logistics.

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5.3. Marketing Strategy
AT markets its services as solutions to the many companies requiring cargo to be transported promptly and efficiently. The company's future marketing plans will be nationwide, emphasizing haulage capabilities for any cargo. The overall marketing plan for services is based on the following fundamentals:
 The segment of the market(s) planned to reach.  Distribution channels planned to reach market segments: sales associates, and mailings.  Share of the market expected to capture over a fixed period of time.
As mentioned in the previous section, it is important to the marketing strategy to develop an attractive image to the trade. This can be done in a number of ways:
1. Advertising. This can be done in transport related industry magazines 2. Join Transport Associations: The image of AT would be elevated by joining such organisations. This cost would be minimal for the first year. Advertising in the association's directory is worth considering. 3. Logo. Development of a top quality logo and photography which can be used in ads, brochures, name cards, etc. Not counting printing costs, which relate to quantity and quality of paper chosen, the design costs for this could be done by a student to keep costs down.

In addition to the above-mentioned activity designed to elevate the company's image, it is essential to market directly the selected target clients who are all members of associations in transport industry. Most of them are associate members while some are professional members. Success in making in-roads into these names would set the stage for entry into the more prestigious big transport operators.
Marketing these prime prospects must be carried out in a thoughtful organized way. Color literature including the newly designed logo should be completed as a first step. When marketing these prospects it will be important to present a portfolio of AT's most innovative work.

5.3.1. Pricing
AT’s pricing will be based on kilometers per tonnage transported. We will be able to charge competitive rates, as we have minimal overheads compared to our competition.

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5.3.2. Marketing Plan
Market Responsibilities. AT Transport is committed to an extensive promotional campaign. To accomplish initial sales goals, the company will require an extremely effective promotional campaign to accomplish two primary objectives:
1. Attract quality sales/service personnel with a desire to be successful.

2. Attract customers that will consistently look to AT for their hauling needs.
Promotion. In addition to standard advertisement practices, AT will gain considerable recognition through these additional promotional mediums:
 Press releases sent to radio stations, newspapers, and magazines.

 Radio advertising on secondary stations.

 We plan to advertise in magazines and newspapers, and on billboards.
Incentives. As an extra incentive for customers and potential customers to remember the name, AT plans to distribute coffee mugs, T-shirts, pens, and other advertising specialties with the company logo.
Brochures. The objective of a brochure is to portray the company's goals and products as an attractive functionality. AT will develop brochures to be used to promote sales, to announce the service in the market, and to recruit sales associates.

5.4. Sales Forecast
The corporation will base its sales strategy from their existing customers and expand to target new businesses. The customer has also shown interest in giving more business to AT. We will have a policy of only accepting jobs that we can deliver with high customer satisfaction.
Sales have been based on 1 x truck generating sales as follows:
R345 per ton x 34 ton truck= R11,730
R11,730 x 38 loads per month = R445,740
One vehicle will generate approximately R445,740 sales per month.
Ten vehicles will be 10 x R445,740 = R4,457,400 per month
Sales for 10 trucks for year one = R53,488,800


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Sales thereafter have been increased by 10% per annum.
Sales have been kept constant per month throughout the year as the business will not be affected by seasonal changes, but will rather be governed by the optimal usage of the contract terms.

Sales Forecast FY 2013 FY 2014 FY 2015 Sales Sales R53 488 800 R58 837 680 R64 721 448 R0 R0 R0

Total Sales R53 488 800 R58 837 680 R64 721 448

Direct Cost of Sales FY 2013 FY 2014 FY 2015

Cost Of Sales R0 R0 R0 R0

Subtotal Direct Cost of Sales R0 R0 R0







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6. Management Summary
Mario Tieras
Mario has completed his matric and is computer literate. He attended SAPS College in Pretoria. He worked as a Parachute Artillery Funner for the South African National Defense Force. This work entailed that he drive military equipment and also the deployment of military equipment via air. Mario’s military experience includes Parachute Courses, Platoon Weapons, Fire fighting, medical courses to name a few.
Mario also worked for South African Police Service as a VIP Protection officer.
The company's management will be done by the owner of the business. He will concentrate on specific functions as far as Logistics, Marketing, Finances and personnel are concerned. All staff including drivers will take accountability for customer care.
Mario works well in a team and without supervision. He is highly committed, strong willed and reliable. He knows how to work with people and clients and is good at planning and marketing.


6.1. Personnel Plan
The personnel of AT consists of the following members:
 1x Owner - Mario
 2x Administrators
 20 x Drivers

Personnel Plan FY 2013 FY 2014 FY 2015 Owner - Mario R120 000 R132 000 R145 200 2 x Administrators @ R5,500 p.p. R132 000 R145 200 R159 720 20 x Drivers @ R15 000 each R3 600 000 R3 960 000 R4 356 000 R0 R0 R0 Total People 23 23 23 Total Payroll R3 852 000 R4 237 200 R4 660 920

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7. Finance
The client has an own contribution of R150,000 towards the operating expenses of the business. A Financial Institution will be approached to finance 10 trucks. Working Capital will also be required for the start-up phase of the business.
The total loan amount will be approximately R25,234,783.00, with a monthly loan repayment of R548,665.00.
Our financial plan is based on conservative estimates and assumptions. We will need to plan on initial investment to make the financials work.


7.1. Significant Assumptions
 Short-term Interest Rate: An interest rate of 11.00% is assumed on any future debt or should the business go into overdraft.  Long-term Debt: An interest rate of 11.00% is assumed on auto dealer financing in need.  Payment Days: This relates to normal accounts payable. This will be on a cash basis.  Collection Days: This relates primarily to corporate clients' revenue. Assumption is thirty days from invoice date and this represents 100% of sales.  Tax Rate: The corporate tax rate on profits is 28% p.a. after allowances  We are assuming steady growth from good management, barring any unforeseen local or national disasters such as an economic slowdown.  We are assuming adequate funding to sustain us during 2013.  Depreciation of 20% per annum has been allowed on the Vehicles on the straight-line basis.
The following table highlights the important general assumptions of the business. Interest rates, tax rates, and personnel burden are based on conservative assumptions.

General Assumptions FY 2013 FY 2014 FY 2015 Plan Month 1 2 3 Current Interest Rate 11.00% 11.00% 11.00% Long-term Interest Rate 11.00% 11.00% 11.00% Tax Rate 28.00% 28.00% 28.00% Other 0 0 0
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7.2. Break-even Analysis
The break-even point for this business is a conservative R3,178,625 per month which should be easily achieved.


Break-even Analysis Monthly Revenue Break-even R3 178 625 Assumptions: Average Percent Variable Cost 0% Estimated Monthly Fixed Cost R3 178 625



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7.3. Projected Profit and Loss
Outlined below, and in the following table and chart, are some of the intrinsic facets of the projected profit and loss for AT. The business will generate sufficient profits to cover all expenses.


Pro Forma Profit and Loss FY 2013 FY 2014 FY 2015 Sales R53 488 800 R58 837 680 R64 721 448 Direct Cost of Sales R0 R0 R0 Other Costs of Sales R0 R0 R0 Total Cost of Sales R0 R0 R0 Gross Margin R53 488 800 R58 837 680 R64 721 448 Gross Margin % 100.00% 100.00% 100.00% Expenses Payroll R3 852 000 R4 237 200 R4 660 920 Marketing R144 000 R158 400 R174 240 Depreciation R3 889 500 R3 889 500 R3 889 500 Rent R600 000 R660 000 R726 000 Motor Vehicle Expenses: Fuel R17 400 000 R19 140 000 R21 054 000 Repairs & Maintenance R7 800 000 R8 580 000 R9 438 000 Printing & Stationery R36 000 R39 600 R43 560 Staff Welfare R30 000 R33 000 R36 300 Insurance R1 320 000 R1 452 000 R1 597 200 Water & Electricity R48 000 R52 800 R58 080 Tracking Device R240 000 R264 000 R290 400 Telephone, Internet & Mobile R72 000 R79 200 R87 120 Tollgate Fees R480 000 R528 000 R580 800 Computer Expenses R36 000 R39 600 R43 560 Cleaning R60 000 R66 000 R72 600 Bank Charges R156 000 R171 600 R188 760 Tyres R1 440 000 R1 584 000 R1 742 400 Licences etc. R120 000 R132 000 R145 200 General Expenses R240 000 R264 000 R290 400 Accounting Fees R180 000 R198 000 R217 800 Total Operating Expenses R38 143 500 R41 568 900 R45 336 840 Profit Before Interest and Taxes R15 345 300 R17 268 780 R19 384 608 EBITDA R19 234 800 R21 158 280 R23 274 108 Interest Expense R2 541 119 R2 087 779 R1 565 824 Taxes Incurred R3 585 171 R4 250 680 R4 989 260 Net Profit R9 219 010 R10 930 321 R12 829 525 Net Profit/Sales 17.24% 18.58% 19.82%


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7.4. Projected Cash Flow
The cash flow projection shows that provisions for ongoing expenses are adequate to meet the needs of the company as the business generates sufficient cash flow to support operations.
Loan repayment of R548,665 per month is broken up into Interest payment of R231,319 and Capital reduction portion of R317,346. The interest portion is reflected under the Profit & Loss Statement under Interest Expense and carried forward into Cash Spending in the Cash Flow. The capital reduction portion is reflected under Long-term Liability Principle Repayment in the Cash Flow. The full repayment amount is therefore taken into account.

Pro Forma Cash Flow FY 2013 FY 2014 FY 2015 Cash Received Cash from Operations Cash Sales R0 R0 R0 Cash from Receivables R49 179 980 R58 406 798 R64 247 478 Subtotal Cash from Operations R49 179 980 R58 406 798 R64 247 478 Additional Cash Received New Current Borrowing R0 R0 R0 New Other Liabilities (interest-free) R0 R0 R0 New Long-term Liabilities R25 234 783 R0 R0 Sales of Other Current Assets R0 R0 R0 Sales of Long-term Assets R0 R0 R0 New Investment Received R150 000 R0 R0 Subtotal Cash Received R74 564 763 R58 406 798 R64 247 478 Expenditures FY 2013 FY 2014 FY 2015 Expenditures from Operations Cash Spending R40 380 290 R44 017 859 R48 002 423 Bill Payments R0 R0 R0 Subtotal Spent on Operations R40 380 290 R44 017 859 R48 002 423 Additional Cash Spent Principal Repayment of Current Borrowing R0 R0 R0 Other Liabilities Principal Repayment R0 R0 R0 Long-term Liabilities Principal Repayment R4 006 142 R4 497 672 R4 992 416 Purchase Other Current Assets R0 R0 R0 Purchase Long-term Assets R19 447 533 R0 R0 Dividends R0 R0 R0 Subtotal Cash Spent R63 833 965 R48 515 531 R52 994 839 Net Cash Flow R10 730 798 R9 891 267 R11 252 638 Cash Balance R10 730 798 R20 622 065 R31 874 704


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7.5. Projected Balance Sheets
The balance sheet is quite solid. We do not project any real trouble meeting our debt obligations--as long as we can achieve our specific objectives.




















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Pro Forma Balance Sheet FY 2013 FY 2014 FY 2015 Assets Current Assets Cash R10 730 798 R20 622 065 R31 874 704 Accounts Receivable R4 308 820 R4 739 702 R5 213 672 Other Current Assets R0 R0 R0 Total Current Assets R15 039 618 R25 361 767 R37 088 376 Long-term Assets Long-term Assets R19 447 533 R19 447 533 R19 447 533 Accumulated Depreciation R3 889 500 R7 779 000 R11 668 500 Total Long-term Assets R15 558 033 R11 668 533 R7 779 033 Total Assets R30 597 651 R37 030 300 R44 867 409 Liabilities and Capital FY 2013 FY 2014 FY 2015 Current Liabilities Accounts Payable R0 R0 R0 Current Borrowing R0 R0 R0 Other Current Liabilities R0 R0 R0 Subtotal Current Liabilities R0 R0 R0 Long-term Liabilities R21 228 641 R16 730 969 R11 738 553 Total Liabilities R21 228 641 R16 730 969 R11 738 553 Paid-in Capital R150 000 R150 000 R150 000 Retained Earnings R0 R9 219 010 R20 149 331 Earnings R9 219 010 R10 930 321 R12 829 525 Total Capital R9 369 010 R20 299 331 R33 128 856 Total Liabilities and Capital R30 597 651 R37 030 300 R44 867 409 Net Worth R9 369 010 R20 299 331 R33 128 856


7.6. Business Ratios
The following table shows some important ratios for the business. The owner can expect excellent returns on investment.





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Ratio Analysis FY 2013 FY 2014 FY 2015 Sales Growth n.a. 10.00% 10.00% Percent of Total Assets Accounts Receivable 14.08% 12.80% 11.62% Other Current Assets 0.00% 0.00% 0.00% Total Current Assets 49.15% 68.49% 82.66% Long-term Assets 50.85% 31.51% 17.34% Total Assets 100.00% 100.00% 100.00% Current Liabilities 0.00% 0.00% 0.00% Long-term Liabilities 69.38% 45.18% 26.16% Total Liabilities 69.38% 45.18% 26.16% Net Worth 30.62% 54.82% 73.84% Percent of Sales Sales 100.00% 100.00% 100.00% Gross Margin 100.00% 100.00% 100.00% Selling, General & Administrative Expenses 82.76% 81.42% 80.18% Advertising Expenses 0.27% 0.27% 0.27% Profit Before Interest and Taxes 28.69% 29.35% 29.95% Main Ratios Current 0.00 0.00 0.00 Quick 0.00 0.00 0.00 Total Debt to Total Assets 69.38% 45.18% 26.16% Pre-tax Return on Net Worth 136.67% 74.79% 53.79% Pre-tax Return on Assets 41.85% 41.00% 39.71% Additional Ratios FY 2013 FY 2014 FY 2015 Net Profit Margin 17.24% 18.58% 19.82% Return on Equity 98.40% 53.85% 38.73% Activity Ratios Accounts Receivable Turnover 12.41 12.41 12.41 Collection Days 29 28 28 Accounts Payable Turnover 0.00 0.00 0.00 Payment Days 0 0 0 Total Asset Turnover 1.75 1.59 1.44 Debt Ratios Debt to Net Worth 2.27 0.82 0.35 Current Liab. to Liab. 0.00 0.00 0.00 Liquidity Ratios Net Working Capital R15 039 618 R25 361 767 R37 088 376 Interest Coverage 6.04 8.27 12.38 Additional Ratios Assets to Sales 0.57 0.63 0.69 Current Debt/Total Assets 0% 0% 0% Acid Test 0.00 0.00 0.00 Sales/Net Worth 5.71 2.90 1.95 Dividend Payout 0.00 0.00 0.00
Appendix
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Sales Forecast Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sales Sales R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 Total Sales R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 Direct Cost of Sales Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Cost Of Sales R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 Subtotal Direct Cost of Sales R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0




Appendix
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Personnel Plan Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Owner - Mario R10 000 R10 000 R10 000 R10 000 R10 000 R10 000 R10 000 R10 000 R10 000 R10 000 R10 000 R10 000 2 x Administrators @ R5,500 p.p. R11 000 R11 000 R11 000 R11 000 R11 000 R11 000 R11 000 R11 000 R11 000 R11 000 R11 000 R11 000 20 x Drivers @ R15 000 each R300 000 R300 000 R300 000 R300 000 R300 000 R300 000 R300 000 R300 000 R300 000 R300 000 R300 000 R300 000 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 Total People 23 23 23 23 23 23 23 23 23 23 23 23 Total Payroll R321 000 R321 000 R321 000 R321 000 R321 000 R321 000 R321 000 R321 000 R321 000 R321 000 R321 000 R321 000




Appendix
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Pro Forma Profit and Loss

Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sales R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 Direct Cost of Sales R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 Other Costs of Sales R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 Total Cost of Sales R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 Gross Margin R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 Gross Margin % 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% Expenses Payroll R321 000 R321 000 R321 000 R321 000 R321 000 R321 000 R321 000 R321 000 R321 000 R321 000 R321 000 R321 000 Marketing R12 000 R12 000 R12 000 R12 000 R12 000 R12 000 R12 000 R12 000 R12 000 R12 000 R12 000 R12 000 Depreciation R324 125 R324 125 R324 125 R324 125 R324 125 R324 125 R324 125 R324 125 R324 125 R324 125 R324 125 R324 125 Rent R50 000 R50 000 R50 000 R50 000 R50 000 R50 000 R50 000 R50 000 R50 000 R50 000 R50 000 R50 000 Motor Vehicle Expenses: Fuel R1 450 000 R1 450 000 R1 450 000 R1 450 000 R1 450 000 R1 450 000 R1 450 000 R1 450 000 R1 450 000 R1 450 000 R1 450 000 R1 450 000 Repairs & Maintenance R650 000 R650 000 R650 000 R650 000 R650 000 R650 000 R650 000 R650 000 R650 000 R650 000 R650 000 R650 000 Printing & Stationery R3 000 R3 000 R3 000 R3 000 R3 000 R3 000 R3 000 R3 000 R3 000 R3 000 R3 000 R3 000 Staff Welfare R2 500 R2 500 R2 500 R2 500 R2 500 R2 500 R2 500 R2 500 R2 500 R2 500 R2 500 R2 500 Insurance R110 000 R110 000 R110 000 R110 000 R110 000 R110 000 R110 000 R110 000 R110 000 R110 000 R110 000 R110 000 Water & Electricity R4 000 R4 000 R4 000 R4 000 R4 000 R4 000 R4 000 R4 000 R4 000 R4 000 R4 000 R4 000 Tracking Device R20 000 R20 000 R20 000 R20 000 R20 000 R20 000 R20 000 R20 000 R20 000 R20 000 R20 000 R20 000 Telephone, Internet & Mobile R6 000 R6 000 R6 000 R6 000 R6 000 R6 000 R6 000 R6 000 R6 000 R6 000 R6 000 R6 000 Tollgate Fees R40 000 R40 000 R40 000 R40 000 R40 000 R40 000 R40 000 R40 000 R40 000 R40 000 R40 000 R40 000 Computer Expenses R3 000 R3 000 R3 000 R3 000 R3 000 R3 000 R3 000 R3 000 R3 000 R3 000 R3 000 R3 000 Cleaning R5 000 R5 000 R5 000 R5 000 R5 000 R5 000 R5 000 R5 000 R5 000 R5 000 R5 000 R5 000 Bank Charges R13 000 R13 000 R13 000 R13 000 R13 000 R13 000 R13 000 R13 000 R13 000 R13 000 R13 000 R13 000 Tyres R120 000 R120 000 R120 000 R120 000 R120 000 R120 000 R120 000 R120 000 R120 000 R120 000 R120 000 R120 000 Licences etc. R10 000 R10 000 R10 000 R10 000 R10 000 R10 000 R10 000 R10 000 R10 000 R10 000 R10 000 R10 000 General Expenses R20 000 R20 000 R20 000 R20 000 R20 000 R20 000 R20 000 R20 000 R20 000 R20 000 R20 000 R20 000 Accounting Fees R15 000 R15 000 R15 000 R15 000 R15 000 R15 000 R15 000 R15 000 R15 000 R15 000 R15 000 R15 000 Total Operating Expenses R3 178 625 R3 178 625 R3 178 625 R3 178 625 R3 178 625 R3 178 625 R3 178 625 R3 178 625 R3 178 625 R3 178 625 R3 178 625 R3 178 625 Profit Before Interest and Taxes R1 278 775 R1 278 775 R1 278 775 R1 278 775 R1 278 775 R1 278 775 R1 278 775 R1 278 775 R1 278 775 R1 278 775 R1 278 775 R1 278 775 EBITDA R1 602 900 R1 602 900 R1 602 900 R1 602 900 R1 602 900 R1 602 900 R1 602 900 R1 602 900 R1 602 900 R1 602 900 R1 602 900 R1 602 900 Interest Expense R228 410 R225 474 R222 512 R219 522 R216 505 R213 460 R210 387 R207 286 R204 157 R200 999 R197 812 R194 596 Taxes Incurred R294 102 R294 924 R295 754 R296 591 R297 436 R298 288 R299 149 R300 017 R300 893 R301 777 R302 670 R303 570 Net Profit R756 263 R758 377 R760 510 R762 662 R764 835 R767 027 R769 239 R771 472 R773 725 R775 999 R778 293 R780 609 Net Profit/Sales 16.97% 17.01% 17.06% 17.11% 17.16% 17.21% 17.26% 17.31% 17.36% 17.41% 17.46% 17.51%
Appendix
Page 23

Pro Forma Cash Flow Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Cash Received Cash from Operations Cash Sales R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 Cash from Receivables R148 580 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 Subtotal Cash from Operations R148 580 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 Additional Cash Received New Current Borrowing R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 New Other Liabilities (interest-free) R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 New Long-term Liabilities R25 234 783 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 Sales of Other Current Assets R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 Sales of Long-term Assets R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 New Investment Received R150 000 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 Subtotal Cash Received R25 533 363 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 R4 457 400 Expenditures Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Expenditures from Operations Cash Spending R3 377 012 R3 374 898 R3 372 765 R3 370 613 R3 368 440 R3 366 248 R3 364 036 R3 361 803 R3 359 550 R3 357 276 R3 354 982 R3 352 666 Bill Payments R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 Subtotal Spent on Operations R3 377 012 R3 374 898 R3 372 765 R3 370 613 R3 368 440 R3 366 248 R3 364 036 R3 361 803 R3 359 550 R3 357 276 R3 354 982 R3 352 666 Additional Cash Spent Principal Repayment of Current Borrowing R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 Other Liabilities Principal Repayment R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 Long-term Liabilities Principal Repayment R317 346 R320 255 R323 191 R326 154 R329 143 R332 161 R335 205 R338 278 R341 379 R344 508 R347 666 R350 853 Purchase Other Current Assets R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 Purchase Long-term Assets R19 447 533 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 Dividends R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 Subtotal Cash Spent R23 141 892 R3 695 154 R3 695 957 R3 696 766 R3 697 584 R3 698 409 R3 699 241 R3 700 081 R3 700 929 R3 701 785 R3 702 648 R3 703 519 Net Cash Flow R2 391 471 R762 246 R761 443 R760 634 R759 816 R758 991 R758 159 R757 319 R756 471 R755 615 R754 752 R753 881 Cash Balance R2 391 471 R3 153 718 R3 915 161 R4 675 795 R5 435 611 R6 194 602 R6 952 761 R7 710 079 R8 466 550 R9 222 166 R9 976 918 R10 730 798
Appendix
Page 24

Pro Forma Balance Sheet

Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Assets Starting Balances Current Assets Cash R0 R2 391 471 R3 153 718 R3 915 161 R4 675 795 R5 435 611 R6 194 602 R6 952 761 R7 710 079 R8 466 550 R9 222 166 R9 976 918 R10 730 798 Accounts Receivable R0 R4 308 820 R4 308 820 R4 308 820 R4 308 820 R4 308 820 R4 308 820 R4 308 820 R4 308 820 R4 308 820 R4 308 820 R4 308 820 R4 308 820 Other Current Assets R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 Total Current Assets R0 R6 700 291 R7 462 538 R8 223 981 R8 984 615 R9 744 431 R10 503 422 R11 261 581 R12 018 899 R12 775 370 R13 530 986 R14 285 738 R15 039 618 Long-term Assets Long-term Assets R0 R19 447 533 R19 447 533 R19 447 533 R19 447 533 R19 447 533 R19 447 533 R19 447 533 R19 447 533 R19 447 533 R19 447 533 R19 447 533 R19 447 533 Accumulated Depreciation R0 R324 125 R648 250 R972 375 R1 296 500 R1 620 625 R1 944 750 R2 268 875 R2 593 000 R2 917 125 R3 241 250 R3 565 375 R3 889 500 Total Long-term Assets R0 R19 123 408 R18 799 283 R18 475 158 R18 151 033 R17 826 908 R17 502 783 R17 178 658 R16 854 533 R16 530 408 R16 206 283 R15 882 158 R15 558 033 Total Assets R0 R25 823 699 R26 261 821 R26 699 139 R27 135 648 R27 571 339 R28 006 205 R28 440 239 R28 873 432 R29 305 778 R29 737 269 R30 167 896 R30 597 651 Liabilities and Capital Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Current Liabilities Accounts Payable R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 Current Borrowing R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 Other Current Liabilities R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 Subtotal Current Liabilities R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 Long-term Liabilities R0 R24 917 437 R24 597 181 R24 273 990 R23 947 836 R23 618 693 R23 286 532 R22 951 327 R22 613 048 R22 271 669 R21 927 161 R21 579 495 R21 228 641 Total Liabilities R0 R24 917 437 R24 597 181 R24 273 990 R23 947 836 R23 618 693 R23 286 532 R22 951 327 R22 613 048 R22 271 669 R21 927 161 R21 579 495 R21 228 641 Paid-in Capital R0 R150 000 R150 000 R150 000 R150 000 R150 000 R150 000 R150 000 R150 000 R150 000 R150 000 R150 000 R150 000 Retained Earnings R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 R0 Earnings R0 R756 263 R1 514 640 R2 275 149 R3 037 811 R3 802 646 R4 569 673 R5 338 912 R6 110 384 R6 884 109 R7 660 108 R8 438 401 R9 219 010 Total Capital R0 R906 263 R1 664 640 R2 425 149 R3 187 811 R3 952 646 R4 719 673 R5 488 912 R6 260 384 R7 034 109 R7 810 108 R8 588 401 R9 369 010 Total Liabilities and Capital R0 R25 823 699 R26 261 821 R26 699 139 R27 135 648 R27 571 339 R28 006 205 R28 440 239 R28 873 432 R29 305 778 R29 737 269 R30 167 896 R30 597 651 Net Worth R0 R906 263 R1 664 640 R2 425 149 R3 187 811 R3 952 646 R4 719 673 R5 488 912 R6 260 384 R7 034 109 R7 810 108 R8 588 401 R9 369 010


Appendix
Page 25

General Assumptions Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Plan Month 1 2 3 4 5 6 7 8 9 10 11 12 Current Interest Rate 11.00% 11.00% 11.00% 11.00% 11.00% 11.00% 11.00% 11.00% 11.00% 11.00% 11.00% 11.00% Long-term Interest Rate 11.00% 11.00% 11.00% 11.00% 11.00% 11.00% 11.00% 11.00% 11.00% 11.00% 11.00% 11.00% Tax Rate 28.00% 28.00% 28.00% 28.00% 28.00% 28.00% 28.00% 28.00% 28.00% 28.00% 28.00% 28.00% Other 0 0 0 0 0 0 0 0 0 0 0 0

Rewards

1 equity shares in the company

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2,5 equity shares

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6 equity shares

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Organizer

Im a police officer who wants to have his dream wedding

Im a police officer who wants to have his dream wedding

Donors

  • Matthew Osterburg
  • Donated on Dec 05, 2018
$10.00

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Donors & Comments

1 donors
  • Matthew Osterburg
  • Donated on Dec 05, 2018
$10.00

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