Use this sample business plan to get your trucking business on the road. Use this example to compile your own.
Mike’s Trucking Service is a Dallas, TX based trucking company that aims to be one of the largest trucking companies in the USA. Mike’s is initially focusing on the food industry with plans to diversify with new industries served.
Mike’s has chosen the trucking industry as the growth prospects are encouraging and stable, with trucking dominating the freight industry in this country.
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Mike’s will offer both for-hire trucking as well as private carriers. Most of their business will be derived from the private carriers. For the private carrier segment, both truck load (TL) and less than truck load (LTL) will be offered. Mike’s services will be especially attractive to the food industry, as participants in that industry typically use referrals, reputation, and customer service as purchasing variables.
Mike’s will serve four different market segments. The first, as mentioned earlier is the food industry. This segment is growing at an annual rate of 3% with 3000 potential customers identified. The second segment is the computer industry with a 5 % growth rate and 1500 possible customers. The retail industry is the third with a 2% growth rate and 1500 customers. The last segment is a catch all “other” segment growing at 2% and 500 customers.
Mike’s Trucking is lead by Mike Smith, a 15 year industry veteran. After college Mike went to work for C&F trucking as a driver for two years. Mike felt that it was instrumental to have experience within an industry at all levels. It was quickly obvious that Mike has skills beyond driving trucks and moved into management for three years.
After five years at C&F it was time for a change and Mike went to Yellow to manage their Southwest region operations. It was ten years of experience at Yellow that provided Mike with the skill sets, experience, and confidence to decide to open his own trucking company business.
Mike’s 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 media. The second effort will be the use of incentives. The incentives will be offered to existing customers. The last effort will be printed brochures. These will be distributed to new and existing customers.
Mike’s Trucking Service is a customer-centric organisation looking to become one of the premier trucking companies in the USA. Profitability is forecasted to occur at month three. Mike’s has conservatively projected sales of $100,000 for year one and $400,000 for year three.
The mission of Mike’s Trucking is to be the leading trucking company servicing the United States.
Mike’s Trucking Service is a Texas LLC, with principal offices located in Dallas, Texas. Mike Smith, president and CEO, is the majority owner. He has been in the trucking business for 15 years.
2.1 Company History
Mike’s Trucking has been in business for one year. We have maintained financial stability during the first year of operation due to the extensive industry experience of our management team.
The trucking industry provides transportation services for persons or companies looking to haul heavy things. Mike’s Trucking enables someone to lease a truck, of any size, for any project that needs hauling.
We will provide this service to the whole of the Dallas area, and hope to expand from this base area within the first five years of operation. This service is provided on two bases: for-hire and private carriers.
Of these two segments, Mike’s Trucking will concentrate on the for-hire carriers, and, more specifically, the truckload (TL) and less-than-truckload (LTL) segments. The services offered, and the markets being targeted, are discussed throughout the following section.
4Market Analysis Summary
Mike’s Trucking has an opportunity to entrench its competitive position in the regional transportation market by selectively focusing its target market on the food industry. The company has already had experience in servicing such clients and it believes that there is a growing demand for reliable transportation solutions in this customer segment.
4.1 Market Segmentation
There are several potential customer segments that we will provide our transportation services to. Major customer segments include the food industry, PC and semiconductor manufacturers, and retailers. The chart and table below outline the current market size and growth estimates for these customer segments in Texas.
Large established companies in the afore-mentioned segments (especially in the food industry) have their own truck fleets, while smaller players outsource the transportation function. The latter vary in the scale of their operations, but have a steady demand for reliable transportation solutions. We will actively solicit such customers.
Related: Free SWOT Analysis Template
4.2 Target Market Segment Strategy
Mike’s Trucking will focus its marketing budget on a selected industry niche. A narrow-served market focus will help strengthen the company’s reputation of a reliable transportation services provider and will generate favourable referrals.
The major customer segment the company is focusing on is the food industry. Companies in this segment have varying needs, and Mike’s Trucking has already gained valuable experience serving such customers. The company management believes that by increasing its truck fleet it can capture additional clients and provide better service to existing clients.
4.3 Service Business Analysis
Market Description Industry: Trucking, except local Establishments that are primarily engaged in furnishing “over-the-road” trucking services or trucking and storage services for freight generally weighing more than 100 pounds. Such operations are principally outside a single municipality, group of contiguous municipalities, or municipality and its suburban areas.
4.3.1 Competition and Buying Patterns
Although there are major players in each of the commercial carrier market segments, the market remains highly fragmented. According to the Dallas Yellow Pages, there are numerous companies providing different kinds of the trucking services. Major competitors for Mike’s Trucking are those companies who have comparable truck fleets and are also targeting the food 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-truckload orders. Customer referrals and carrier’s reputation are believed to strongly influence the buying decision.
4.3.2 Financial Risks and Contingencies
The company recognises 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 food industry businesses in the United States. This position is favourable since the industry is fairly stable. Any slow down in the food production would have negative repercussions for Mike’s Trucking. To mitigate this risk, the company is looking at diversifying its trucking business to include other industries as well. Operational risk. Mike’s Trucking recognises the fact that there is an inherent risk in transporting cargo. Any damage to cargo may undermine the profitable of the company. To reduce this risk, the company maintains all necessary insurance.
4.3.3 Business Participants
With some $344 billion in 1998 revenues, the trucking (or motor carrier) business claimed 79% of the U.S. commercial freight transportation market. This total was divided among two sectors: private carriage and for hire.
Although private carriers comprise the largest component of the motor-carrier industry, financial information isn’t available for them. However, the industry is estimated to provide services valued at some $200 billion annually (or 58% of motor carrier revenues in 1998). The American Trucking Association (ATA) estimates that there are more than three million trucks operated by private fleets transporting 3.5 billion tons of freight annually.
The for-hire category generated $144 billion in 1998, or 42% of the industry total. Of that $144 billion, some $105 billion (73% of the sector’s business) came from truckload shipments, and $39 billion (27%) was from less-than-truckload and package/express delivery.
Truckload (TL). The national for-hire truckload segment had total revenues of $65 billion in 1998. The TL sector has historically been mostly privately owned, with the exception of the top ten publicly-owned companies (For this reason, we focused on the LTL sector in this survey). Schneider National Carriers was the largest TL operator, with revenues of $2.8 billion in 1998, followed by J.B. Hunt Transport Services ($1.8 billion), and the Landstar family of truckload-carriers ($1.3 billion). Of the 50,000 truck load carriers, perhaps 95% had annual revenues of less than $1 million. Less-than-truckload (LTL). The ATA estimates that the less-than-truckload market garnered $20 billion in 1998. Of this amount, the fast-growing regional segment accounted for slightly more than the national market.
The largest national LTL carrier was Roadway Express Inc., with $2.32 billion in LTL revenues in 1998; the company’s total revenue of $2.55 billion includes TL freight. Yellow Freight System (a unit of Yellow Corporation) was close behind, with $2.25 billion (out of $2.46 billion total). Consolidated Freightways Corporation was third, with $1.95 billion in LTL revenues. In the regional LTL market, Con-Way Transportation (a unit of CNF Transportation Inc.) was the largest player, with $1.5 billion in LTL revenue in 1998. Second place belonged to US Freightways, whose family of five carriers generated some 41.4 billion in LTL revenue. American Freightways Corporation was third, with $928 million in less-than-truckload revenues.
Auto Repair Shop Business Plan Sample
Start up an auto repair shop using this detailed sample business plan.
Start up an auto repair shop using this detailed sample business plan. Use this example to compile your own.
F & R Auto (F & R) is the desire of John Ford and Michael Ronald who together have 30 years experience as auto mechanics. Both have a dream of starting up their own company and offering better service to their clients than competitors.
The objectives over the next three years for F & R Auto Repair are the following:
- Sales revenues increase steadily through year three.
- Institute a program of superior customer service through rigorous evaluation of service experience.
- Hire three more mechanics.
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1.2 Keys to Success
In the auto repair industry a company builds its client base one customer at a time and mostly through word of mouth marketing. With this in mind, the keys to success for F & R Auto Repair are:
- High-quality work.
- Constant contact with clients so as to keep them informed about the state of their automobile and the repair job progress.
- Knowledgeable mechanics that are friendly, customer oriented, and will take the time to explain to customer the intricate nature of our business and our work.
The mission of F & R Auto Repair is to provide high quality, convenient and comprehensive auto repair at low cost. The most important aspect of our business is trust. It is the goal of our firm to have 100% customer satisfaction in regards to quality, friendliness, time to completion and to discover new ways to exceed the expectations of our clients.
The company will be a partnership with John Ford and Michael Ronald each owning 50% of the company. The company will be a limited liability company registered in the state of Washington. The firm will have facilities on 1312 1st Ave NW in Ballard, a neighbourhood of Seattle.
The facilities will contain a two-bay garage, office space and storage space for tools, parts, etc. The company is seeking a loan in order to finance the start of operations for the company. Each of the owners will be putting up some of their own capital as equity.
2.1 Start-up Summary
The data obtained for the start-up comes from research done in the Seattle area with other small mechanic shops who have started their own business. Inflation has been taken into account between the estimates of these fellow business owners (and when they started) and the current prices for expensed items. Much of the equipment to go into the facilities such as tools, air compressors, etc., are currently owned by the two partners.
Related: SWOT Analysis Samples
F & R Auto offers a wide range of services as outlined in the detailed sections below. It is ultimately the goal of the company to offer a one-stop facility for all auto servicing needs, including brakes, transmission, wheel alignment, etc. In this way the company can offer greater perceived value for the customer than many other shops which specialise in certain areas.
The industry is highly competitive with suppliers having a great deal of power in setting and negotiating the prices of their products and services to repair shops. In addition, because the customers see the service as undifferentiated and a “commodity” with little value separation between competitors, buyer power is also very high.
Finally, the barriers to entry are moderately low, and the large number of competitors in this field, including substitutes (such as do-it-yourself work) mean that the pricing for such services are very competitive. The only way to have an advantage in this industry is a low cost leadership principal applied aggressively or to create higher switching costs through the building of strong business to customer ties.
F & R Auto will hire trained and certified mechanics who are able to prove they have superior customer awareness and interaction. It is the company’s professional people who will fulfill the firm’s contracts and goals. The largest part of the company’s expenses will be in labor costs.
Related: 9 Different Kinds Of SME Funding
3.1 Service Description
F & R Auto provides a wide range of auto repair services. These include:
- Scheduled maintenance.
- Wheel alignments, tires and rims.
- Brake repair.
- Comprehensive engine repair.
Each job or project will be on a reservation basis, although we will accept a small percentage of drive in repair work.
3.2 Competitive Comparison
The auto repair industry is highly competitive. Each company within this field has high capital costs, low margins, and a high intensity of competition.
Suppliers have a great deal of power in setting and negotiating the prices of their products and services to repair shops. This is due to the fact that the suppliers who absorb the greatest amounts of cash from repair shops are large auto part companies. These companies are more consolidated that the repair industry, have deeper pockets, an almost limitless number of substitute customers, and finally they are the single most important supplier to F & R’s industry. Therefore, these companies can set whatever price they wish to. Furthermore, labor is a supplier in this industry as well, and salaries for such individuals are well known and not very flexible.
In addition, because the customers see the service as undifferentiated and a “commodity” with little value separation between competitors (if they offer a suitable level of quality) buyer power is also very high.
Additionally, the costs of our services are not cheap, and buyers are willing to search for the most favourable combination of price and acceptable service. The barriers to entry and exit are moderately low in this industry. Switching costs are virtually non-existent and the costs to entry and exist the market are low.
The large number of competitors in this field including substitutes mean that the pricing for such services are very competitive. The only way to have an advantage in this industry is a low cost leadership principal applied aggressively to all aspects of the business or to build up customer relations to a point where the switching costs are raised.
The technological revolution in computers has enhanced our abilities to diagnose and repair our clients vehicles. F &R will remain on the cutting edge by instituting the use of computer diagnostic equipment in its shop. The company will continue to seek new ways to provide a better service through technology.
3.4 Future Services
The company does not have any plans to create further services at this time.
4Market Analysis Summary
Since F & R will be able to service any vehicle on the road, including motorcycles and campers, it does not make any sense to segment our market. Our potential customer includes every household in Seattle that owns one or more vehicles. The industry does not have any seasonality that affects it.
Freight Brokerage Business Plan
Discover the successes of a freight company with this sample business plan.
Freight Brokerage Business Plan
Silicon Freight Brokers (SFB) is a specialized freight broker service located in Hood River, OR. The company has been set up as an Oregon C Corporation by the owner, Steve Tookarefol. SFB’s objective is to become the premier silicon chip freight broker, increasing their client base by 20% a year.
Freight Brokers and Silicon Chips
The freight broker industry is the middle man of the shipping industry. They are also known as third party transportation providers. Freight brokers provide a service by linking customers with shippers and trucking companies. Their service is indispensable when moving goods throughout this country as there are literally hundreds of different shippers offering thousands of different services. The freight brokers make the process of securing a shipper quite easy with one-stop shopping.
The silicon chip industry is a growing industry that to a large degree has fueled the incredible growth of the late 90’s Internet boom. Silicon chips are the basis of all types of computers as well as hand held devices such as cell phones, PDAs, even watches and some household appliances.
SFB will be occupying a niche within the general freight brokerage market by specializing in the shipment of silicon chips. Silicon chips are very specific, unusual cargo that requires special attention. The chips have a very narrow range of temperature and humidity parameters that must be maintained. In addition to these unusual requirements, there are other specific needs that silicon chip companies have. By specializing on silicon chips as their only cargo, SFB will quickly gain market share and be known as the premier broker for chips.
The industry of chips is comprised of two distinct customers, manufacturers of chips and purchasers of chips. The manufacturers are based in the USA, however some of them produce in the States while others farm out production overseas and them import them. The chip purchasers are primarily Intel, IBM, and Motorola.
SFB is led by a seasoned management team of Steve and Wendy Tookarefol. Steve has over 10 years of freight experience, working for several different companies. This work experience has been instrumental in allowing Steve to accurately determine the market need and meet it. SFB has coupled Steve’s in-depth trucking/ freight brokerage knowledge and insight with his wife’s expertise in the silicon chip industry. For the last seven years Wendy has been an industry consultant, working quite close with companies such as Intel.
SFB’s solid business model is forecasted to reach profitability by month six. SFB will achieve market penetration by remaining laser focused on their market niche, while fully utilizing their strong management team.
Silicon Freight Brokers objectives from the first three years of operation include:
- To create a service-based company whose #1 ambition is to continually exceed the customer’s expectations.
- The utilization of Silicon Freight Brokers in at least four of the top 10 silicon chip producers, as listed in Silicon Industry Journal.
- To increase our number of served clients by 20% per year through superior performance and word of mouth referrals.
- To develop a sustainable, profitable, start-up business.
The Silicon Freight Brokers’ mission is to provide the customer with the most satisfying shipping experience that they have ever experienced. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers.
Silicon Freight Brokers, as the name implies, is a freight broker for the silicon chip industry. SFB has two types of customers, buyers and sellers of silicon chips. SFB is establishing relationships with carriers that specialize in this unique cargo. We will offer our customers the highest level of service.
2.1 Start-up Summary
Silicon Freight Brokers’ (SFB) start-up costs include all the equipment needed for an office. Additionally, there will be legal fees, marketing fees, accounting fees, trade association dues, and deposit for the lease. The largest expense for the office is a computer system. The minimum requirements for this system are: 600 mhz Pentium processor, 128 megabytes RAM, 10 gigabyte hard drive, printer, and CD-RW, Microsoft Office, and an accounting suite. The office will also require a DSL broadband connection, two land-line phones, fax machine, copier machine, and some office furniture. The legal fees are for corporate formation, and the generation and review of contracts. The marketing fees are the costs associated with advertisements in industry journals, brochures, and website visibility generation. The accounting fees are for the services necessary for the formation of the business, while the majority of the accounting after start up will be done in-house with an accounting suite on the computer.
Silicon Freight Brokers is a niche freight broker for the silicon chip industry. SFB will provide a brokerage service to link manufacturers of silicon computer chips and the users of the chips such as Intel, Texas Instruments and Motorola with freight companies. Freight brokers are basically the “middle man” between a shipper and trucking company, also referred to as “third party transportation providers.” SFB will work with companies to find a safe, economical way of transporting silicon chips. SFB will have two types of customers:
- Silicon chip manufacturers. These can be further broken down into two categories, those that manufacture overseas, and those that manufacture in the U.S.
- Manufacturers of processors that utilize silicon chips.
Market Analysis Summary
Silicon Freight Brokers will be concentrating on the freight brokerage of silicon chips. This is a small, specialized, niche of the general freight brokerage industry. SFB is concentrating on this space for several reasons:
- SFB has extensive industry knowledge and insight regarding freight brokerage and silicon chips.
- The silicon chip industry is continuing to grow as our dependence on technology increases.
- There is plenty of space for a new specialty freight brokerage company. SFB’s extensive knowledge of both the freight and chip industry provides for valuable insights that can add significant value to SFB’s customers.
4.1 Market Segmentation
Silicon Freight Brokers will be focusing solely on the freight brokerage of silicon chips. There are two distinct customers in this niche market, manufacturers of the chips, and the buyers of the chips who are processor manufacturers. The manufacturers of the chips can be further broken down into two groups, those that have manufacturing facilities abroad and those in the U.S. Those that have facilities abroad will generally ship them to a United States ocean port, and from there they travel via truck to a processor manufacturer. The second group of chip manufacturers, those that have facilities in the U.S., transport chips via truck from their facility to the processor manufacturer. Although, in general, silicon chip production has shifted overseas, there are a collection of chip manufacturers still located in the States. The difference between the two types is not very significant, SFB arranges for the carrier to pick up the chips either off the boat or from the manufacturing facility. Whether SFB deals with the manufacturer or the seller is a function of the contractual terms that the buyer and seller agree to. Sometimes it is the manufacturer’s obligation to ship, other times it is the buyer’s obligation to arrange pick up of the chips. The chip buyers are manufacturers that use the chips in their processors. The largest processor manufacturers, Intel, Texas Instruments and Motorola, are located in the U.S.
4.2 Target Market Segment Strategy
Silicon Freight Brokers is concentrating on the silicon chips niche as it is a very specialized, thriving market. By focusing in this market space, SFB will be able to offer superior service. Shipping of silicon chips requires special types of trucks that are humidity and temperature controlled. SFB will form intimate relationships with the unique carriers because this relationship will provide SFB with special insight, which will allow SFB to meet any need a customer might have. Shipping silicon chips has special requirements and SFB will be more familiar with these requirements because it will not be distracted by offering other services. Specialization also allows SFB to develop close relationships to the limited number of carriers that are equiped to transport chips. Lastly, the growth of processor manufacturing, which requires silicon chips, has far outpaced most other industries in this country. This growth rate makes this niche especially attractive. In the freight broker market, there are general brokers that offer a wide range of services. There are a few companies that specialize, but no one is as niche focused as SFB. Because most all of the silicon chips are transported through the U.S. via trucks, there is considerable growth in the specialty freight brokerage business. SFB will be marketing our business through several different outlets. The first is the Internet. A lot of the industry has moved to the Web as means for communication regarding freight quotes. SFB will be developing a website where a customer can go to find out an estimate for freight rates. The website would key for finding the requisite information like weight, pick up and destination, and SFB would work with our carriers to find them the most safe and economical solution. Because SFB is only working with silicon chips, the complexity of the number and type of trucks to be used (non-temperature controlled, etc.) is reduced. SFB will also be running advertisements in silicon chip trade journals. The ads in the silicon chip journals will provide visibility for SFB to the manufacturers and buyers of the chips.
4.3 Service Business Analysis
There are many different freight brokerage services. This market is broken up into generalists, handling all types of freight brokerage, and specialists, handling materials ranging from heavy equipment, oversized loads, perishable commodities, or hazardous materials. The chip buyers and sellers make the shipping decision based on service (defined by many variables including customer service, speed, safety of the product) and price. Most business is repeat business, 70-80% according to industry statistics. Once a customer finds someone who they are happy with, they typically stay with them.
Aircraft Weighing Systems Business Plan
A sample business plan to guide you in starting a business that assists airlines in complying with weight standards and limitations.
Aircraft Weighing Systems Business Plan
Heavy Lifting, Inc. is a new entrant in the international civil aviation industry and is in its formative stages. It is being formed to take advantage of a gap that exists in international civil aviation safety with respect to the provision of systems:
- For independently verifying compliance with maximum certified aircraft weight & balance limitations for take off and landing.
- That provide airport operators with a revenue-generating tool that is more efficient and uses a fairer base from which to generate airport landing fees than the present system.
- That offer others in the industry cost savings and accurate weight & balance measurement.
- That achieve peace of mind, fuel and emission cost savings and can reduce maintenance costs for aircraft operators.
The management of Heavy Lifting, Inc. is experienced in the aviation and engineering businesses with a total of over eighty years combined experience.
From a modest initial turnover in the first year, Heavy Lifting, Inc. expects exceptional sales by the end of year three and a commensurate net profit. Our research shows that there is a potential for upwards of 10,000 airports in the World that need our product. From that potential our company expects to obtain a lion’s share of the total market. An outside investor, with 20% of Heavy lifting stock, can expect an IRR of 91% on a $1 Million investment by year 5, when we plan an initial public offering of stock.
We will begin by demonstrating the overdue need for aircraft weight and balance systems at all airports carrying passengers or freight for hire or reward. We will outline a unique and innovative method of revenue generation for airport owners coupled with a tangible flight safety enhancement that can potentially save the industry untold human lives and aircraft hull losses.
The company has the following objectives:
- To build and test the first two (2) Heavy Lifting aircraft weigh bridges at DEF, California, U.S. in the first year of operations.
- To gain acceptance of the concept of weigh bridges as a mandatory safety and compliance checking requirement for all Regular Passenger Transport (RPT) and Cargo aircraft in U.S. and the world.
- Maintain a world database of commercial weight and balance information.
- After acceptance by FAA of the mandatory requirement for RPT airports, to provide Heavy Lifting systems for regular public transport and cargo aircraft safety monitoring and compliance and to gain acceptance from other State CAA’s and from ICAO of the need for a global safety and compliance monitoring weight and balance network (Create SARPS in Annex 6).
It is our ultimate objective to sell Heavy Lifting aircraft weight and balance weigh bridges to all airports in the world that cater for aircraft carrying passengers and/or cargo for hire or reward.
Heavy Lifting’s mission is to provide accurate and cost-effective aircraft weight and balance, safety and compliance monitoring systems to all aviation users. This includes regulatory authorities, airport owners, aircraft operators, aircraft insurers, aircraft manufacturers, and the travelling public in the international civil aviation environment.
Our service will ensure that all aircraft will be measured quickly and accurately just before takeoff to ensure they do not exceed the certified maximum allowable takeoff weight limit or exceed the load balance limits for that aircraft type. On landing, each aircraft will be weighed to ensure compliance with maximum certified landing weight limits for that aircraft type. Our products will help enhance flight safety. They will be produced to the highest international standards of accuracy, reliability and quality assurance. Our products will be ISO 9001 certified.
- Ethical conduct.
- Openness (Transparent business dealings).
- Quality Assurance.
- Customer satisfaction.
- State-of-the-art technology.
- Ongoing feedback and discussion.
To our staff, we offer industry leading renumeration packages that recognize and reward excellence. We offer all full-time employees a renumeration package that recognizes their worth to the company, their families and the community. Benefits such as heath care insurance, term life insurance and long-service pension plans are offered to all staff under the terms of our various contracts.
To our customers, we offer the assurance that we will always be listening. We will try to be aware of their needs and involve them in all phases of the product’s implementation. From pre-contract to post-contract, we pledge to behave in a totally professional, helpful and friendly manner. To our shareholders, we pledge to maximize profits, consistent with a policy of quality and service above profit. We invite every shareholder to be able to contact the company senior management with any and all matters of concern, and to this end we publish the contact email addresses of all senior management. We will do business in an open and professional manner and welcome constructive feedback.
1.3 Keys to Success
Our keys to success are:
- Experienced executive management
- High-quality products
- Systems delivered on time, within budget
- The unfilled market need for our products
Heavy Lifting, Inc. is being formed in April, 2005 to develop a model and prototype for approval after trial by the FAA and thereafter as a provider of Heavy Lifting aircraft weight and balance systems and consultant services to the FAA and airports in the U.S., and subsequently around the world. Its office will be in Gold Coast City, California.
The company will provide Heavy Lifting aircraft weight and balance systems and consultant services to airport owners, aviation authorities, airlines, government agencies and other interested parties, such as insurers, manufacturers, accident investigation bodies and maintenance companies.
The founders of Heavy Lifting, Inc. are:
- Captain A. Airway, MBA – has over four decades of experience in the aviation business as an ex-military pilot, international airline pilot, past ALPA VP and President, Pilot’s MBF Trustee and small business owner. A is a Fellow of the Royal Aeronautical Society. A is the inventor of Heavy Lifting Systems.
- Mr B. Freeway, MBA FRAeS – has over two decades experience in international aviation consultancy through owning and operating his own business, Aviation Consultants International. Previously he was a helicopter pilot for approximately 15 years in Australia. B is also an Aviation professor at GOP University, Nathan, California.
- Mr C. Highway – a former principal shareholder, Company X (weigh machine manufacturer). C is presently a weigh bridge consultant. C has been at the design and innovation forefront of weigh bridge design in the U.S. and has many firsts to his credit. Individual axle weight measurement for locomotives and designing and building a 400-ton mining-dump-truck weigh bridge are just two examples.
- Mr D. Byway – a founding partner of Company Y, Gold Coast City, California. As a founding partner of Company Y, D is involved in all forms of commercial law, including start-up business funding, conveyance and property development both in US and overseas. D gained his Law degree at UCLA.
- Mr E. Expressway – has had over two decades of experience in the food processing and packaging industry and brings international marketing and service engineering experience to the company. E was involved in the New Zealand start-up of his company before moving to the U.S. to become the manufacturing and marketing manager. E travels overseas extensively.
2.1 Company Ownership
Heavy Lifting, Inc., a public unlisted company, will be registered in Gold Coast City, California and will authorize 30,000,000 shares of common and preferential stock. 10,000,000 shares will be set aside as founders’ stock to be divided up amongst key founding shareholders as follows, based on their investment:
- CEO, A. Airway 40%.
- Manufacturing Director, C. Highway 10%.
- Project Director, B. Freeway 10%.
- Legal Services Director, D. Byway 10%
- Marketing Director, E. Expressway 10%
- Venture capital provider 20%
It is also envisaged that management stock options will be made available to key management personnel after operations commence. Founders’ stock plus option stock will not total more than 33% of the authorized shares. Initial seed capital is to be attracted by way of either an advance payment or other negotiated financial arrangement or both with:
- Funds from private venture capital providers in U.S. or elsewhere in the world.
- Funds from U.S. Government innovative and business sponsorship schemes.
- Sole private investor (Company or individual).
The expected proceeds from the Private Placement are expected to be $2,000,000 at “seed” stage and $300,000,000 in I.P.O. proceeds (projected at $3 per share). Management cannot assure that an I.P.O. will be available at the time desired and at the price sought.
2.2 Start-up Summary
Heavy Lifting, Inc.’s start up costs are projected below, and will be provided directly from “seed” capital.
In the first year year we will build (2) Heavy Lifting machines as follows:
- One (1) prototype at DEF Airport, CA, US.
- One (1) prototype at GHI Airport, Dublin, Ireland
- The initial two (2)units will be prototype models to gain experience and gather data to prove the Heavy Lifting concept is viable and performs to expectations. It will also be used to develop standard operating procedures concerning FAA/CAA rules and create a database of weight & balance information. A free trial period of 6 months per unit should be sufficient to achieve these goals. Once approved, the prototype units will be available for sale. Likely customers are the U.S. and Irish Governments, DEF International Airport or private investors.
Once approved, Heavy Lifting will market the product extensively in US and Europe. Pricing for these Heavy Lifting systems is provisionally estimated at $1,000,000 each (sales of these prototypes are listed in the first month of the plan). Costing is estimated at $650-750,000 each reducing as R & D costs are absorbed. Costing includes consultant services, manufacture of Heavy Lifting locally and under license in Ireland and elsewhere in the world. These prototype materials costs are listed under Inventory, in the Start-up table, below. We will also need to buy equipment sufficient to begin the production process, listed as current and long-term assets, below.
The above figures assume a Deluxe Heavy Lifting Mk I model without customization. The Mk I model includes:
- Visual display panel adjacent to the taxi way.
- Airport operations data link.
- ATS operations data link capability
- CAA operations data link capability.
- Airline operations data link capability
- Third party data link capability.
- Heavy Lifting, Inc. database link.
- In ground installation.
Securing sufficient funding to support the introduction to the aviation industry of Heavy Lifting systems. Specifically; the research and development costs associated with producing a computer model, a portable demonstration unit and funding for the building testing and operation of at least the first full scale unit in ground for FAA; the operation of this unit free of charge for 6 months to build an initial data base.
Due to the need for Government approval, the FAA has been approached on a personal basis. Heavy Lifting Systems needs to build, test and trial its product for a period of up to 6 months. Then the aviation authorities need time to develop rules, regulations and SOP’s for using the Heavy Lifting Systems; they have given us a time frame of a further six months. This makes a total of one year for our start-up period, before payment for the first systems. This is a necessary evil of creating a world first. It is akin to designing a new type of aircraft. First you must build it to demonstrate it will fly. In the Heavy Lifting case, the weigh bridge design is not new, but the application of the customized weigh bridge to aircraft, and the formulas in the software that allow weight & balance for such a complicated craft to be measured, are totally unique.
2.3 Company Locations and Facilities
Management intends to operate initially from a home office based in Gold Coast City, CA. Office space allocated is 200 sq ft at no charge during the first year of start-up. Virtual office services will be provided as necessary. All printing, faxing, copying and electronic mail will be provided at this office, except for embossed Logo and letterhead printing. After start-up, in our first plan year, Heavy Lifting, Inc. will occupy commercial office space at [proprietary and confidential information removed]. This space is available at $100 sq. ft., plus parking fees and maintenance fees.
This space is sufficient for the following usage:
- CEO’s office
- PA Office manager Foyer
- Board room Library
- Cubicle space for contract staff and software engineer
- Equipment space, computer server, printing room, office storage
Later, regional offices are planned for locations to be leased in Montreal, Canada (North America Branch), Bangkok, Thailand (Asia and SE Asia Branch), and Dublin, Ireland (European Branch).
Products and Services
The product consists of three principal parts:
- The patented Heavy Lifting 3 platform weight & balance weigh bridge (Hardware).
- The provision of data collection and transmission services (Hardware and Software).
- The provision of consultant services to evaluate customer’s needs and design custom weigh bridges.
The first two parts are included in the sales price. Consultant services vary by client needs, and will be billed separately. **There are no consultant fees assessed for testing and sale of the initial prototypes, since that is part of the R&D costs of developing the new product. Product quality is paramount. Always with maximum safety, quality and reliability guaranteed (ISO 9001 certified). Quality and assurance audit systems to maintain maximum quality at all stages of manufacture, operation and maintenance of Heavy Lifting systems.
These products and services are provided by Heavy Lifting, Inc. personnel, weigh bridge manufacturers (under license), and data service providers to aviation.
The Weigh Bridge
Heavy Lifting, Inc.’s aircraft weight & balance product is the ideal system for airport operators and owners.
The Heavy Lifting weigh bridge system allows airport operators to accurately weigh all aircraft using the airport’s facilities. At present, the system used by most international airport operators is charging by aircraft type and number of cycles of take-off and landing or by certified maximum take off weight (MTOW). Some operators may be operating consistently below their maximum allowable take-off or landing weights, but are being charged at the one flat rate. Some operators may be cheating the system by operating over allowable weights. This may be possible as no accurate, independent and verifiable weighing system is available at airports until now. These operators will be caught, fined or have their licenses suspended or revoked. Nobody wants a deceitful operator on their airfield or in their system. These operators may arrive over-weight from overseas, secure in the knowledge that no one will know.
Airport operators will have the ability to adjust their charges to airline users in line with actual weights. That will allow the airport operator to more accurately assess the impact effects of various weights on the runways, taxi ways and hard standing areas. Visiting aircraft, non-scheduled aircraft and military and state aircraft can be more accurately and fairly billed for their use of the airport. Most importantly, airport operators will have a tool at their disposal with which to independently verify that all aircraft operating at that airport are operating within the law, as far as aircraft weight is concerned. This will have enormous benefits to the operator in the event of the unthinkable but inevitable fact of an aircraft accident/incident on the airport or to or from that airport. Public liability insurance premiums should show favorable reductions for airports with the Heavy Lifting, Inc. systems in operation.
3.1 Product and Service Description
Heavy Lifting, Inc. provides Heavy Lifting weigh bridges manufactured by world leading weigh bridge manufacturing companies to airport owners, airline operators or authorities.
Starting prices are as low as $1,000,000 for a fully functional Heavy Lifting weigh bridge, designed for aircraft from commuter aircraft to international jet transports such as the B747. Smaller units and portable weighing machines are scheduled for future availability priced from $150,000. Heavy Lifting, Inc. provides airport owners with construction advice and services for the installation of licensed Heavy Lifting weigh bridges either as lead contractor or sole contractor. We require pre-payment of one half (1/2) the total sales price upon beginning the installation. The rest is due at completion of the project. Normal per-consultant fees for pre-project cost/benefit analyses are $200 per hour plus expenses.
Consulting and Customization
Heavy Lifting, Inc. provides operating and in-service advice and consultation for licensed Heavy Lifting weigh bridges to airport customers. As a guide, Heavy Lifting, Inc. charges $200 per hour plus expenses per consultant. The services provided include but are not limited to:
Customization of Heavy Lifting weigh bridges to suit customers needs, such as number, placement and complexity of data servers and terminals.
Advice, based on studies, trials and experience on the location and number of Heavy Lifting machines required.
Advice on strategy to cope with possible airline, manufacturer or other interested group resistance to the Heavy Lifting concept.
Heavy Lifting, Inc. provides advice and consultation to local and international insurance industry representatives as to:
- The Heavy Lifting concept.
- The need for improved flight safety and consumer confidence by the use of Heavy Lifting weigh bridges.
- Legal implications of NOT employing Heavy Lifting at all airports serving commercial civil aviation.
- Consultation on the International civil aviation related aspects of safety oversight and audit programs and the changing nature of liability for aircraft accidents.
Fees are charged on either a per consultant $200 per hour plus expenses basis or a contract service fee basis.
Heavy Lifting, Inc. offers State Governments our full range of products and services including:
- Heavy Lifting weigh bridges
- Heavy Lifting data services (Hardware and Software). Prices by negotiation
- Heavy Lifting consultant services. Per consultant, $200 per hour plus expenses
Heavy Lifting, Inc. offers accident investigation organizations, such as NTSB, consultancy and Heavy Lifting data and information on a per-hour-plus-expenses basis. Heavy Lifting certified weight data can be an invaluable tool to verify the take off weight of a particular ill fated flight subject to investigation. Similarly accurate and verifiable aircraft landing weights will remove one more unknown from the landing accident story. Fees are charged at the standard, per consultant, $200 per-hour-plus-expenses basis for personal representations or at a data provision rate.
Heavy Lifting, Inc. offers service partnership arrangements to Boeing Aeroplane, Airbus Industries and other international aircraft manufacturers. These arrangements can involve but are not limited to:
- The sharing of technologies and information regarding Heavy Lifting weigh bridges.
- The sharing of information regarding the Heavy Lifting concept of aircraft weight verification and compliance.
- The provision of Heavy Lifting machines and services at company airfields such as Boeing field, Seattle, USA.
- The linking of Heavy Lifting products to Aircraft manufacturer’s products at the design and marketing phases of new aircraft production.
- Access to Heavy Lifting database for manufacturer’s aircraft operating weight by flight, date, model number and aircraft number.
3.2 Competitive Comparison
There is currently no competition.
As the concept is embraced by more and more airports, airlines, governments and regulatory agencies around the U.S. and overseas, other weigh bridge manufacturers will be encouraged to tender for work under license. Heavy Lifting, Inc.’s aim is to capture the major market share of world aviation weigh bridge acquisition through excellence of product, quality assurance guaranteed (ISO 9002). World-wide patents will be obtained by Heavy Lifting, Inc. to protect the product. U.S. patent [# omitted] has been obtained and is owned by Mr. A. Airway. U.S. registered trademark protection has been obtained by Mr. A. Airway.
Later licenses to build Heavy Lifting weigh bridges will be granted to selected weigh bridge manufacturers as necessary. Due to future state-imposed licensing requirements, Heavy Lifting, Inc. will be in a favorable position to win aviation weigh bridge tenders. Aggressive litigious legal assistance will be used to maintain market share where necessary. Hopefully this will not be needed except in the rare cases of government, industry or airport owner corruption or collusion.
Competition will be further restricted by government regulation, once obtained, as weigh bridge manufacturers will have to be licensed. Licensing requirements will initially be drawn up by Heavy Lifting, Inc. consultants working from previous development, design and construction experience, and the aviation detail protocol requirements should deter all but the largest weighbridge manufacturers.
Protocols such as traceability of Heavy Lifting components and maintenance systems will be employed throughout the weighbridge design, patent and construction phases. Airport owners, Government agencies and others requiring aviation weigh bridges that are still interested in sourcing their own manufacturers will find it easier and cheaper to license the patented Heavy Lifting weigh bridge from Heavy Lifting, Inc.
3.3 Sales Literature
All company literature is yet to be developed. This includes basic corporate identity material as well as advertising executions. Start-up projections include an expense item for this necessary development work included in the website design item. The logo has already been designed and will be registered. The company website will be the primary marketing medium method for our products.
Sales and marketing in the initial period will be by direct sales approaches to prospective customers by the principals of Heavy Lifting, Inc., using customized power point presentations and personal briefings. Subsequent meetings can be arranged by tele-conference calls.
Specifications for the Heavy Lifting weigh bridge, manufactured under licence by [proprietary and confidential information removed], are available on demand by interested parties, through Heavy Lifting, Inc. All installations will be in-ground units. These units will be tailored to local ground conditions concerning such things as drainage, slope and soil type.
Heavy Lifting, Inc.’s weigh bridges will be capable of weighing aircraft from small regional commuter such as the EMB 135 to giant B744F cargo aircraft. Heavy Lifting weigh bridges will provide visual indications on site to the pilot in command of the aircraft via large digital display panels (also visible to the passengers). Speed across the weigh bridge will be limited to 5 kph for normal use. For compliance, a stop of up to 30 seconds may be required. Additionally, utilizing state-of-the-art software and additional hardware (dedicated servers and intranet connections), digital read outs to any number of slave stations can be provided, such as to airport operations, airline operations, engineering/maintenance watch rooms, crash fire control room, aircraft recovery and jacking/towing assistance control, and regulatory databases.
Global accident and investigation organizations and the Insurance Council can be provided with database information by arrangement with the Heavy Lifting owners. All weigh bridges will be to OEML standards. The weighing components will have traceable component logging and government-supervised accuracy measurement and audit. Heavy Lifting weigh bridges will be accurate to within 1-200 kg., depending upon the time allowed for measurement. The weight calibration equipment is conditional upon the provision of concrete weight blocks of up to forty tons each. Heavy lift equipment must be available, via hire or airport equipment to move the blocks on to the weighbridge for accuracy testing and verification.
All data obtained by Heavy Lifting weigh bridges will be stored against an individual flight number and aircraft registration number as specified on the flight plan. Electronic date, time, location and registration stamps of the weighed aircraft will be provided independently by Heavy Lifting Systems. Detailed engineering drawings of the Heavy Lifting Mk I are available and can be provided to interested parties on request.
The hardware component of the Heavy Lifting system is proven technology in other transport industries, such as the road transport industry. The software, however, is peculiar to aircraft. The software must be capable of:
- Calculating the gross weight of the aircraft by totalizing the three platforms’ weight measurements.
- Providing a center of gravity (CG) position in relation to the aircraft mean chord (MAC).
- Correcting measured weight for the effect of wind over the aerofoil surfaces of the aircraft.
- Correcting weight measurement for temperature variations.
- Capturing the date & time against a particular aircraft registration.
- Capturing the registration data electronically.
- Providing a traffic guidance system for aircraft to be measured.
The captured data will be:
- Stored on Heavy Lifting Inc’s servers.
- Produced for customers by email packet via the Internet.
- Produced for customers by data packet via local Intranet.
- Data transmission and recording will be via wireless link on site.
The company website will include a customer log-on service to allow customers to log on and download archival data.
IT requirements for Heavy Lifting, Inc. will consist of:
- Data storage servers.
- Communication servers (Internet/Intranet).
- Hardware units on site such as CG and wind factor units.
- Company IT servers and work stations.
- Company financial computerized system.
As far as possible, off the shelf computer/server and storage units will be used. Technology affects Heavy Lifting, Inc. to the extent that all communications in the field will be by wireless high speed data connection. Additionally, as proprietory software is developed, improvements and modification states will be continuously reviewed.
3.6 Future Products and Services
Future load cell technology will improve weighing accuracy and will be constantly monitored as it develops. The engineering and construction techniques for Heavy Lifting will be constantly reviewed with a view to improving reliability, accuracy, environmental impact and cost.
A second design model Heavy Lifting Systems (Standard model) is planned to cater for smaller airports with maximum aircraft weight limits suitable for the runways provided. These units can accommodate aircraft up to B767 or equivalent size and will be of twin platform design.
A third design model is planned that caters for small aircraft and special function needs. These smaller model Heavy Lifting (Basic model) can be manufactured to cover temporary needs such as special aviation events at that airport for a limited duration. For example, air show weekends, aviation commuter trade expositions or FAA oversight and audit checks. These Basic Heavy Lifting models can be made road/rail transportable and placed in above-ground locations on an airport maneuvering area. Event organizers may consider event entrant pricing structures based on landing or takeoff weights. Another use for the Basic Heavy Lifting weigh bridge could be during airfield reconstruction, when other runways/taxi ways with lower LCN numbers have to be used. Temporary aircraft weight monitoring pricing services can be provided by airport authorities. The size of these installations is limited only by the physical limitations of the site.
Market Analysis Summary
The customer base anticipated for Heavy Lifting, Inc.’s products and services includes:
- Airport owners-provision of Heavy Lifting products, financing and consultation services.
- Regulatory Authority-provision of Heavy Lifting products, finance and consultation services.
- Insurance Industry-provision of information regarding the Heavy Lifting concept and products, the need for and the provision of Heavy Lifting weight & balance weigh bridges for civil aviation.
- Aircraft manufacturers-Boeing Aeroplane, Airbus Industries, BAC, Embreaer and other major international aircraft manufacturing companies-consultation and service partner relationships.
- Flight Safety Organizations-International safety consultant services related to the concept of Heavy Lifting aircraft weight & balance systems and their benefits to flight safety.
- International Civil Aviation Organization-assistance to ICAO in the preparation of weigh bridge related standards and related procedures (SARPS).
- Sate Governments-assistance with the formulation of Government policy, regulation drafting and incorporation of weight & balance weigh bridge SARPS in State legislation.
- Data production services (Heavy Lifting, Inc. data services)-providing aircraft operational weight & balance and other data and statistics for legislative monitoring, compliance, research and audit of International civil aviation weigh bridge systems.
- IFALPA & Private aircraft owners associations-educating pilots on the availability of the Heavy Lifting concept product and systems.
- Consumer rights groups and civil aviation passenger representative organizations-to educate and inform them of the Heavy Lifting concept, product and system. Demonstrating how Heavy Lifting can help improve flight safety through compliance, monitoring, audit and data collection of aircraft operating weights.
- Accident investigation bodies and other safety organizations-provision of data and consultant services on an as requested basis.
- Aviation educational organizations-provision of presentations, papers and general information of an educational nature on the Heavy Lifting concept, product and systems.
4.1 Market Segmentation
Heavy Lifting, Inc. will create the market for Heavy Lifting aircraft weight & balance weigh bridges with a carefully-planned educational campaign. As its creator, Heavy Lifting, Inc. will control 100% of the market, for at least the first couple of years. Controlled growth at the major airports in California, and European markets will give some maturity and stability to both the markets and the company.
Markets for weigh bridges: airports
- European Union: By the time Heavy Lifting, Inc. moves into its third year of operations, some opposition may be found in the European Union (EU) through complaints to the monopolies commission by European weigh bridge manufacturers. A loss of 30% of the potential market may be encountered by anti-competitive trade rule enforcement action by the EU. As Heavy Lifting, Inc. is primarily a flight safety equipment maker, this market opposition may be limited by trade licensing agreements to perhaps 15% loss. This still ensures a healthy 85% dominance.
- Canadian and U.K. market penetration should initially be able to be contained to 100% domination for at least the first two years under possible regulatory limits or trial permit limitations. The third year may see market dilution for Heavy Lifting, Inc. by as much as 30%, similar to the European mature market expectation. Again, a significant maintenance of revenues can be achieved by licensing agreements.
- Southeast Asia: Once Heavy Lifting, Inc. penetrates the SE Asian market, the market protection from external competition may lie in APEC membership by establishing a secondary headquarters in Australia. Secondly, many airports are still Government-owned and controlled, and Heavy Lifting, Inc., as the World leader in aviation weigh bridge design, construction and consultative services, should maintain a near 100% market share. At the very least market penetration by major competitors should be contained by involving them in licensing agreements. Market share should be a healthy 90% after corruption, graft and trade incentives are allowed for.
- United States: Entry into the U.S. market is much more favorable with respect to market share due to the patriotic nature of the market (as a U.S. Company) and the degree of collusion between business and the FAA. Heavy Lifting, Inc. may gain some advantage by both licensing agreements with U.S. manufacturers and partnership ventures. At the very least, Heavy Lifting, Inc. aims for 50% market share.
Obviously, the U.S. market potential is huge with more than 75% of the available airports of the world for marketing purposes. If even 50% of the market can be maintained, Heavy Lifting, Inc. stands to have considerable financial success.
Markets for consulting and data:
- Accident Investigation/Safety Organizations
- Insurers of Flights and Cargo
- Educational Institutions seeking data
4.2 Target Market Segment Strategy
[Proprietary and confidential information removed].
4.2.1 Market Needs
The international aviation market has matured over the past 60 odd years to the point where accident rates have stagnated. Admittedly at an admirably low level when compared to an other human transportation endeavor, however the public through the media still see each and every aircraft crash as a graphic catastrophe far worse than the accident rates suggest.
With the growth of International civil aviation forecast to accelerate by upwards of 20% over the next twenty years, this will translate into even more hull losses at the same accident rate. Any practical, cost-efficient flight safety enhancement must be seized by the aviation industry if a real reduction in the accident rate is to be achieved. Weighing aircraft before and after flight is a way of keeping the aircraft operators of toady and tomorrow honest. The fact these Heavy Lifting weigh bridges can also pay for themselves and make money is a revolutionary concept in fight safety.
Over the past decade, ICAO and other World aviation bodies have recognized that to reduce the accident rate the aviation system rather than the individual must be made accountable. Numerous studies have shown and are showing that factors such as corporate culture, national culture and cockpit culture affect flight safety. There is a growing move Airway from the blame the pilot game to one of accountability and responsibility for all aviation system players.
Thus the Chairman, Board of Directors, CEO and management of airlines are required by legislation in many countries to be accountable and responsible for their aircraft, crew and passengers. Similarly, as the result of deficient airport systems leading to fatal aircraft accidents, the owners and operators of airports are increasingly subject to accountability and responsibility laws. In addition, the ICAO’s Universal Safety and Audit Oversight Program is reinforcing this system wide approach to accident rate reduction. Pressure from the insurance industry, both directly (through premiums) and indirectly (lobbying in government), is also increasingly turning the spotlight on airport and airline operators.
4.2.2 Market Growth
Market growth will depend mainly, in the beginning, on the financial fortunes of International airport companies. For the foreseeable future their financial forecast appear to be good. Growth in international passenger and cargo revenues for the next twenty years is projected by both IATA and ICAO to be in double-digit numbers.
As the product is more widely accepted as being essential to aviation safety and Legislation is introduced Internationally, the market will expand to countries in the developing and under-developed world. The U.N., the World Bank, Asian Development Bank and other trade lending organizations will be quite capable of providing funds for the Heavy Lifting concept implementation in these less-financially-able countries.
The advent of space travel and any other revolutionary personal mass travel systems that involve mass will always have a need to be weighed before and after flight, both as a regulatory requirement and a flight safety enhancement. The user pays philosophy behind the Heavy Lifting concept can contribute to a Global aviation market growth climate in an positive way.
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