P&A Transport LLC Hotshot Business Plan Confidentiality Agreement The undersigned reader acknowledges that the information provided by Keava Garrett in this business plan is confidential; therefore, reader agrees not to disclose it without the express written permission of Keava Garrett. It is acknowledged by reader that information to be furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure of same by reader may cause serious harm or damage to the success of P&A Transport LLC. Upon request, this document is to be immediately returned to Keava Garrett. ______________________ Signature ______________________ Signature ______________________ Printed Name ______________________ Printed Name ______________________ Name (typed or printed) ______________________ Name (typed or printed) ______________________ Date ______________________ Date This is a business plan. It does not imply an offering of securities. 2 1. Executive Summary 1.0 Executive Summary P&A Transport LLC is the primary provider of expedited trucking services in Oklahoma. We will be providing a wide range of services to meet the shipping and heavy equipment industry requirements. We will be servicing clients across the United States. Our goal is to remain a step ahead of our competition by providing exquisite services by specializing in delivering time sensitive loads we can transport a range of loads from small to mid-size businesses. We will provide a safe and secure pick up and drop off. What makes P&A Transport LLC so unique is that we like to build bonds with our customers and offer a cost-efficient and dependable hotshot service. The company’s priority will be to provide excellent customer service every step of the way from booking to the delivery and receiving the haul. The main objectives of the development of this new business are: Develop the company’s name, logo, and website. Determine equipment requirements. To maintain tight control of costs, operations, and cash flow To exceed $2 million annual revenue by the third year of plan implementation. The keys to success in achieving our goals are: Provide exceptional service that leaves an impression. Consistent advertisement and promotion. Managing our internal finances and cash flow to enable upward capital growth. Strict control of all costs, at all times. 2. Company Summary 2.0 Company Summary The key elements of P&A Transport LLC concept are as follows: 3 1. Client focused hot shot trucking services—Treat each client individually and get the job done right the first time. 2. Through knowledge—Of our clients, their industries, and their varying needs. 3. Service—Built on long-term relationships 4. Exceptional service --In order to reach and maintain a unique image of quality, P&A Transport LLC will provide attentive and friendly service through a high ratio of service personnel to customers. 2.1 Company Ownership P&A Transport is held LLC. The LLC consists of one principle KG. KG holds a degree in Business Management from Rose State College. She has held management positions for local retail business. She has also held an internship at Tinker Federal Credit Union. Her most recent management role was to manage a stuff of 7 for approximately one year where she has been a successful manager. 2.2 Start-up Summary The company is seeking a loan for start-up purposes for a hot shot transportation business Funds needed to accomplish goal referenced above will be $70,000. The applicant will require the entire $70,000 to finish project build-out. We will utilize the anticipated loans in the amount of $70,000 a trucks equipment and marketing expenses for the start-up of a new hotshot transportation business Startup Breakdown Start-up Expenses Amount $500$1000 $3,5004,000 Licenses and permits Insurance Marketing and advertising $500-2,000 Website $100-750 15,00045,000 $7,000$20,000 $200$1,000 $1,000$1,000 $28,00075,000 Pick-up truck Trailer Other tools and equipment Miscellaneous Start-up Expenses 4 3. Services 3.0 Services P&A transport LLC will offer both for-hire trucking as well as private carriers. Most of the business will be derived from the private carriers. For the private carrier segment, The emergence of the north to northwest metropolitan area of Austin represents a unique opportunity for an elegant, highly desired, old-school musically themed venue. The development's central location, demographics, and lack of direct competition are major advantages to this project. The proposed venue will provide a local solution to the lack of social atmosphere geared primarily toward the 30-55 age groups in the Austin area and will help keep late night entertainment expenditures within the localized region. The new venue will specialize in an old school theme, and will offer beer, wine and an array of liquors and mixed drinks. In addition, the venue will sell non-alcoholic beverages such as soft drinks, juices and bottled water. The hours of operation will be Thurs, Fri, and Sat from 4pm to 2am. We will utilize the facility to provide dance classes on Sunday, Monday, Tuesday, and Wednesday. We will also host various comedy shows, fashion shows, and hair shows on any give day. The establishment will draw primarily from the Austin and Round Rock market while attracting guests from the area's other surrounding cities and towns. 4. Market Analysis Summary 4.0 Market Analysis Summary P&A Transport LLC will employ three distinct marketing efforts to raise awareness about the company and generate new customers. The first strategy is the use of promotions. This will focus on press releases and advertising using various different medias. The second effort will be the use of incentives. The incentives will be offered to existing customers. The last effort will be printed cards. These will be distributed to new and existing customers. P&A Transport LLC is a customer-centric organization looking to become one of the premier hotshot companies in the USA. Profitability is forecasted to occur at the month three. P&A Transport LLC has conservatively projected sales of $6151 for year on and $112,230 for year three. 4.1 Market Segmentation 5 1. Construction Businesses—Are currently experiencing high demand, due to pent-up demand that has resulted from supply chain disruption. The current high construction backlog means that construction companies cannot afford delays caused by a lack of equipment and/or materials, so the need for hot shot trucking services has increased. 2. Mining business –With the increase in oil production, mining businesses cannot afford delays caused by equipment failure. Hot shot trucking services ensure that necessary parts and equipment are delivered rapidly, so that production may continue with minimal disruption. 3. Other small to mid-size businesses—Hot shot trucking services are necessary for businesses in a variety of industries, from medical facilities to utilities to government. 4.2 Target Market Segment Strategy Our strategy is based on serving our particular markets exceptionally well. Majority of our clients will be B2B -others businesses that require our services to keep their own business running. P&A Transport will focus its marketing budget on selected industry niche. A narrow-served market focus will help increase the companies reputation of a reliable transportation service. Providers will generate favorable referrals. The main customer segment the company is focusing on is the hotshot industry. Companies in this segment has varying needs, and P&A Transport has already gained valuable experience serving such customers. The company management believes that by increasing its fleet trucks it can capture additional clients and provider better service to existing customers. The marketing strategy is essential to the main strategy: Emphasize exceptional service. Create awareness of the company and its features Focus on our target markets. We must charge appropriately for the high-end and high-quality service that we offer. Our revenue structure has to match our cost structure, so the wages we pay and the training we provide to assure superior quality and service must be balanced by the fees we charge. We can't just market another hotshot company we must actually deliver on our promise of quality, service and exceptional experience. We need to make sure we have high quality customer service. 6 5.1 Marketing Strategy Market Responsibilities. P&A Transport LLC 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 P&A Transport LLC for their hauling needs. Promotion. In addition to standard advertisement practices, P&A Transport LLC will gain considerable recognition through these additional promotional mediums: Press releases sent to radio stations and social media Radio advertising on secondary stations. We plan to advertise nationally, on billboards and television, and radio, and on social media platforms Incentives. As an extra incentive for customers and potential customers to remember the name, P&A Transport LLC plans to distribute coffee mugs, T-shirts, Pens, and other adverting specialties with company logo. Average Monthly Sales 80000 70000 60000 50000 40000 30000 20000 10000 0 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 7 Apr-08 May-08 Jun-08 July-08 Aug-08 7. Financial Plan 7.0 Financial Plan [back to top] The financial projections for this plan are presented in the tables and charts of the following subtopics. 8 7.1 Important Assumptions [back to top] The financial plan depends on important assumptions, most of which are illustrated in the following table. The key underlying assumptions are: We assume a slow-growth economy of five percent the first year, and three percent thereafter, without major recession. We assume that we will grow as managers during the process, this growth will manifest itself as flat line expense growth over the five-year period, leading to increased annual cash flow. We assume access to equity capital and financing sufficient to maintain our financial plan as shown in the tables. We assume continued popularity of nightclubs in America and the growing demand for high-energy themed and casual dining venues. General Assumptions 2007 2008 2 3 Current Interest Rate 10.00% 10.00% Long-term Interest Rate 10.00% 10.00% Tax Rate 25.00% 25.42% Sales on Credit % 10.00% 10.00% 0 0 Plan Month Other 7.2 Break-even Analysis [back to top] The Archive Lounge Break-Even Analysis formulas are presented in the text below: Fixed Costs $Xxxx Variable Costs $ Xxxx Revenue (Estimated)$ Xxxx *S = Gross Sales S = $ + [($Xxx,xxx/ $X,xxx,xxx) x S] 9 S = $X,xxx,xxx + [(.xxxx) x S] S = $X,xxx,xxx Break Even Point = $X,xxx,xxx Breakeven Analysis Summary Variable Cost $2.50 per unit Fixed Cost $895,438.00 Expected Sales 80,000 units Price $18.50 per unit Total Revenue $1,480,000.00 Total Variable Costs $200,000.00 Profit $384,562.00 Average Weekly Break Even Revenues – approximately $8700.00 Minimum Nightly Required Spending Per Person - $12.00 + $6.50 = $18.50 Minimum Nightly Required Incoming Traffic – 300 10 Break-even Analysis Annual break-even point (Break-even point = where line intersects with 0) 11 7.3 Projected Profit and Loss Projected profit and loss statement for the nightclub follows. Three years' annual totals are shown below. Monthly breakdown for year one appears in the appendix. Pro Forma Profit and Loss 2007 2008 2009 Beverage Sales 234720 $824,800 $948,520 Admission Sales 117,360 $541,450 $622,668 $352,080 $1,366,250 $1,571,188 $11,200 $142,500 $165,000 $0 $0 $0 $11,200 $142,500 $165,000 Total Sales Cost of Beverage Sales Cost of Admission Sales Subtotal Direct Cost of Sales Other Production Expenses Total Cost of Sales Gross Margin Gross Margin % $0 $0 $0 ------------ ------------ ------------ $11,200 $142,500 $165,000 $340,880 $1,223,750 $1,406,188 96.82% 89.57% 89.50% $150,416 $391,874 $431,062 $25,000 $75,000 $150,000 Expenses: Payroll Sales and Marketing and Other Expenses Depreciation $0 $0 $0 Fees--Credit Card $1,500 $1,650 $1,800 Fees--Professional $3,000 $3,700 $4,000 Taxes--Admission Taxes--Excise Taxes--Property Leased Equipment $0 $0 $0 $41,780 $146,814 $168,837 $0 $0 $0 $600 $2,200 $2,500 $15,000 $36,720 $37,454 $6,000 $15,950 $16,409 Rent $46,500 $77,787 $80,899 Payroll Taxes $24,067 $62,700 $68,970 Other $0 $0 $0 Loan $22,800 $60,000 $60,000 ------------ ------------ ------------ $336,663 $874,396 $1,021,930 $4,217 $349,354 $384,257 Utilities Insurance Total Operating Expenses Profit Before Interest and Taxes Interest Expense $0 $0 $0 Taxes Incurred $1,033 $85,592 $94,143 Net Profit $3,184 $263,763 $290,114 Net Profit/Sales 0.90% 19.31% 18.46% 12
