Freight Car Rental business Business Plan

Freight Car Rental business Business PlanName

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Table of Contents TOC o “1-3” h z u

HYPERLINK l “_Toc382841961” EXECUTIVE SUMMARY PAGEREF _Toc382841961 h 3

HYPERLINK l “_Toc382841962” 1.0.Introduction PAGEREF _Toc382841962 h 4

HYPERLINK l “_Toc382841963” 1.1 The Company PAGEREF _Toc382841963 h 5

HYPERLINK l “_Toc382841964” 1.2. The Services PAGEREF _Toc382841964 h 5

HYPERLINK l “_Toc382841965” 1.3. The Target Customers PAGEREF _Toc382841965 h 5

HYPERLINK l “_Toc382841966” 1.4. Financial considerations PAGEREF _Toc382841966 h 6

HYPERLINK l “_Toc382841967” 1.5. SWOT ANALYSIS PAGEREF _Toc382841967 h 7

HYPERLINK l “_Toc382841968” 1.5.1. Strengths PAGEREF _Toc382841968 h 7

HYPERLINK l “_Toc382841969” 1.5.2. Weaknesses PAGEREF _Toc382841969 h 7

HYPERLINK l “_Toc382841970” 1.5.3. Opportunities PAGEREF _Toc382841970 h 7

HYPERLINK l “_Toc382841971” 1.5.4. Threats PAGEREF _Toc382841971 h 8

HYPERLINK l “_Toc382841972” 1.6. Human resource plan . PAGEREF _Toc382841972 h 8

HYPERLINK l “_Toc382841973” Chapter 2 PAGEREF _Toc382841973 h 9

HYPERLINK l “_Toc382841974” 2.0.INTRODUCTION PAGEREF _Toc382841974 h 9

HYPERLINK l “_Toc382841975” 2.1 Mission PAGEREF _Toc382841975 h 9

HYPERLINK l “_Toc382841976” 2.2 Keys to success PAGEREF _Toc382841976 h 9

HYPERLINK l “_Toc382841977” 2.3 Objectives PAGEREF _Toc382841977 h 9

HYPERLINK l “_Toc382841978” 2.4. Company summary PAGEREF _Toc382841978 h 10

HYPERLINK l “_Toc382841979” 2.5. Company ownership PAGEREF _Toc382841979 h 10

HYPERLINK l “_Toc382841980” Chapter 3 PAGEREF _Toc382841980 h 11

HYPERLINK l “_Toc382841981” 3.0 FINANCIAL PLAN PAGEREF _Toc382841981 h 11

HYPERLINK l “_Toc382841982” 3.1. Freight activity PAGEREF _Toc382841982 h 11

HYPERLINK l “_Toc382841983” 3.1.1 Multimodal operation PAGEREF _Toc382841983 h 11

HYPERLINK l “_Toc382841984” 3.1.2 Motor carrier services PAGEREF _Toc382841984 h 11

HYPERLINK l “_Toc382841985” 3.1.3 Transportation plan PAGEREF _Toc382841985 h 11

HYPERLINK l “_Toc382841986” Works Cited PAGEREF _Toc382841986 h 12

EXECUTIVE SUMMARYFreight Car Rental business is gaining popularity. This is catapulted by the growth of international trade. With globalization, multinational corporations are entering new markets and local 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 business . There is a lot to gain from and am convinced that the business will get the required funding. 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 proprietorship type of business. It has got three major departments that work independently, these departments include; the security and transport department, the sales department and the accountancy department. All these departments are headed by the human resource manager who is answerable 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.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 business. He or she employs the human resource manger and is liable for making major decisions on the business such as liquidation

IntroductionThe mission of Freight Car Rental business Freight Company is to fulfill car rental business services. This company will deal with special and cultural forwarders from UAE . Our consultation 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 platform over the other businesses so that it could be able to meet the demands of the people. In addition, 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 CompanyFreight 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 office spaces. This company plan to begin its services in July.

1.2. The ServicesFreight Car Rental business provide exhaustive freight brokerage and inventory consultation services. Car rental, hire, among other service. In addition, the business also offers transportation rental services to company on transit among other multicarriege transport business on hire or rental basis.

1.3. The Target CustomersFreight Car Rental business will be concerned with servicing only corporate and individual 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 controlled 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 competitors.

1.4. Financial considerationsTo start, it needs assets i.e. expenses and cash needed to support the running of the business 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 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. Initial 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 ANALYSIS1.5.1. StrengthsFreight 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 geographical region and cover other cities such as Sydney due to the unique range of services such as mobile offices.1.5.2. WeaknessesThe 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 adequate then the business is bound to fail. Another weakness is the high cost of operation. Whenever 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. OpportunitiesThe 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.

1.5.4. ThreatsThreats mainly arise from competition from existing import export businesses and availability of a large capital base to maintain and start up the business.

1.6. Human resource planFreight 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 essential 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 include brokering goods, how to maintain good customer relations. The payment of such employment will be made through the human resource manager who heads the labor force and answerable to the sole proprietor. These rules must be adhered to regardless of anything else.Chapter 2 INTRODUCTIONDespite 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 people 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 destination

2.1 MissionIt 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 understand that the freight shops and restaurant in the promise has to be attended to provide special features for the tourists to be flooding every year.

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 ensuring that the services offered to the client are of outstanding quality hence able to have a positive growth towards the success of the company. This is to inform all the clients that the company 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, business among others needs on demand.

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

2.4. Company summaryThe company will be a limited liability partnership registered in Dubai, UAE for tax purposes. 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 investors. 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. 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 ownershipThe 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 33.0 FINANCIAL PLANBelow 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 activity3.1.1 Multi-operationIt should work on the organizational results on research activities related to freight movement, Freight organizational study in the first mode is underway. This mode will provide a template for focusing on other modes, A study on techniques, equipments and strategies are being looked at.

3.1.2 Motor carrier servicesMotor 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 company also offer driver hires in the case that a company has no driver in case of emergency among others.

3.1.3 Transportation planWe 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 transportation 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 CitedAbrams, 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.

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.