Yolvalda Jones Week 5 IP Lady Aries Express Business Plan

LADY ARIES EXPRESS BUSINESS PLAN 1
Lady Aries Express Business Plan
Yolvalda N. Jones
American InterContinental University

Table of Contents
Executive Summary…………………………………………………………………3
Business Description………………………………………………………………...3
Definition of the Market…………………………………………………………….4
Description of proposed products or services………………………………………5
Organization and Management description…………………………………………6
Marketing Strategy………………………………………………………………….10
Financial Management………………………………………………………………12
Reference Page………………………………………………………………………14
Appendixes………………………………………………………………………….15

Executive Summary
Lady Aries Express is a trucking company that will be based out of Houston Texas. Lady
Aries Express primary goal is providing empty trucks that are available to haul either full truck
loads or less than truck freight material all across the United States and Canada. Lady Aries
Express with contract with brokers and companies on a contract basis, and hire other owner
operators own as contract employees as well to help fill the gap in the freight and logistics
market. Lady Aries Express will provide freight hauling delivery and pick/up of products from
air cargo (Planes), Ports (Ships), Train (Rail), Warehouse, and Manufacturing Plants throughout
the Unites States and Canada. Lady Aries Express will deliver freight by the truckloads in a safe
and timely manner in accordance with all D. O. T. (Department of Transportation) rules.
Business Description
According to IBISWorld (2016), “The industry is characterized by low concentration,
with owner-operators accounting for over 90.0% of industry companies. With high levels of
fragmentation, industry operators experience intense price competition and generally earn low
profit margins. In 2016, the average industry profit margin is estimated to account for 7.1% of
industry revenue, up from 4.8% in 2011. Industry operators have historically passed on increased
fuel costs to consumers via fuel surcharges, but diesel prices have fallen steadily since 2013.
This has resulted in higher profit margins but lower revenue growth over the five-year period.
With relatively healthy profit margins, industry participants have been forced to offer
competitive wages and benefits to draw in and retain the best employees. As a result, IBISWorld
forecasts that total wages will increase at an annualized rate of 4.0% to about $48.5 billion in the
five years to 2016”. Revenue (in current dollars) for US railroads, trucking, and water

transportation services, all major indicators for freight forwarding, is forecast to grow at an
annual compounded rate of 5 percent between 2015 and 2019. (Hoovers, 2015)
Lady Aries Express CEO currently holds a Commercial Driver’s License with hazmat
and passenger endorsements. Lady Aries Express CEO is also TSA (Transportation Security
Administration) Registered and has clearance to ship and pick/up at airports throughout the
United States. Lady Aries Express CEO also has a TWIC (Transportation Workers Identification
Card) which allows access to area ports throughout the United States. The CEO of Lady Aries
Express has 17 years of over the road driver experience throughout the United States and
Canada. The CEO of Lady Aries Express also holds an Associate’s Degree in Business
Management focus on Entrepreneurship, and she currently attends AIU seeking her Bachelors
graduating in March of 2017. The CEO has a grade point average of 3.8 and is a Dean’s List
Student each semester.
Lady Aries Express is an Entrepreneurial Business is run by CEO Yolvalda Jones and the
business is seeking start/up funding from investors to get this business started. Lady Aries
Express will need funding to purchase trucking equipment and trailer to start the business and
purchase the required licensing and registration with insurance on the start/up truck and Yolvalda
will operate the first truck and hire others own that have their own equipment.
Definition of Market
Our Services
Lady Aries Express will offer on-time delivery to customers by moving their products and
goods from one state to another in a safe and timely manner. I want Lady Aries Express to be
one of the leaders in the market when it comes to freight delivery and customer service. The
services Lady Aries Express Offers listed below;

 24/7 Dispatch
 Dry Van, Refrigerated, Flatbed
 Quality Service
 Licensed Drivers
 On-Time Service Pick/up - Delivery
 Accurate Delivery records
 Great Communication
 Problem Solving
 Reliable Equipment
 Licensed / Bonded
Description of Service
 Our Vision Statement
Lady Aries Express Vision is to be one of the greatest choicest when it comes to choosing a
company to transport any load across the United States and Canada.
 Our Mission Statement
Lady Aries Express mission is to be recognized as one of the best in the transportation and
logistics industry when it comes to on-time and safe delivery of products and goods throughout
the United States of America and Canada.
 Business Structure
Lady Aries Express business structure will be that of a LLC (Limited Liability Corporation), this
will be done to protect the personal assets of Lady Aries Express and this will allow for
flexibility. Lady Aries Express will hire other contract drivers to work under the business as well
and will form a contract with the other drivers and provide them with a 1099 Tax form each year.

To keep Lady Aries Express in the top of the transportation and logistics market the business will
need to hire the following for the new Texas based business
 Chief Operating Officer (Owner)
 Drivers (Contract Employees)
 Accountant
 Administrator and HR Manager
 Transportation and Logistics Manager
 Business Developer
Organization and Management Description
Chief Operating Officer (Owner)
 Owner will provide direction of Lady Aries Express Business
 Day to day business responsibilities
 Will lead to organizations strategy’s’ and implement the business vision, mission, and
plan
 Coordinate will clients and finalize sales
 Locate potential clients and sign contracts
 Analyze the business on a monthly basis to evaluate success
 Finalize checks and business forms for Lady Aries Express
Drivers (Contract Employees)
 Load and unload cargo
 Keep adequate logbooks and comply with federal regulations and guidelines

 Keep daily logs of truck inspections and any problems that they find must be fixed
immediately and communicated to dispatch.
 Communicate with the transport and logistics manager each time you pick/up and
delivery a load.
 Keep all bill of lading forms and copies of MSDS (Material Safety Data Sheets) as well
as logbooks forms to mail in to dispatch via any FedEx or UPS shipping.
 Comply with all Federal Motor Carrier Safety guidelines weight, routes, size, parking,
and rest periods and locations.
 Report all accidents and incidents to your dispatch as well as the proper authority’s
including Chem Trec if necessary.
Accountant
 Prepare financial statement, reports, budgets for Lady Aries Express Business.
 Provide all departments with the correct forms for their department, market research,
company analysis, etc.
 Manage financial systems and policies for Lady Aries Express.
 Prepare all the financial tractions for Lady Aries Express
 Ensure that all transactions are being handled lawfully and comply with taxation
legislation.
 Will serve as the internal auditor at Lady Aries Express.
Administrator and HR Manager
 Will handle the running of HR and administration task for Lady Aries Express on a daily
basis.

 Will be in charge of the hiring process including recruiting for different department new
hires.
 Will be in charge of new staff training and job placement within the department at lady
Aries Express.
 Will handle travel arrangements for Lady Aries Express meetings, and new hires, as well
appointment arrangements.

Transportation and Logistics Manager
 Coordinates drivers, vehicles, loads and journeys
 operates IT systems
 negotiates and agrees to contracts
 develops and confirms schedules
 plans for and negotiates technical difficulties
 prepares paperwork for regulatory bodies
 liaises and manages staff
 implements health and safety standards
 Plans routes and load scheduling for multi-drop deliveries.
 Books in deliveries and liaises with customers.
 Allocates and records resources and movements on the transport planning system.
 Ensures all partners in the supply chain are working effectively and efficiently to ensure
smooth operations.
 Communicates effectively with clients and responds to their requirements.

 Directs all transportation activities.
 Develops transportation relationships.
 Monitors transport costs.
 Negotiates and bargains transportation prices.
 Deals with the effects of congestion.
 Confronts climate change issues by implementing transport strategies and monitoring an
organization’s carbon footprint.
(ProfitVenture.com 2015)
Business Developer
 Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
 Identifies development opportunities; follows up on development leads and contacts;
participates in the structuring and financing of projects; assures the completion of
development projects.
 Responsible for supervising implementation, advocate for the customer’s needs, and
communicate with clients
 Develops, executes and evaluates new plans for expanding increase sales
 Documents all customer contact and information.
 Represents the company in strategic meetings
 Helps increase sales and growth for the company
(ProfitVenture.com 2015)

Marketing Strategy
Lady Aries Express will hire a business consultant to help the company conduct a SWOT
Analysis, this will then lead our company in the right direction when it comes to defining our
strengths, weakness, opportunities, and threats.
Definition of the Market
 Strength
Lady Aries Express strengths will include the company’s supply chain, cost advantage,
size advantage, overall customer loyalty among the domestic players in the market.
 Weakness
Lady Aries Express weakness can be a lack of financing, the cost structure of the
company, and it may depend on how the company is gaining ground in the industry.
 Opportunities
Lady Aries Express opportunities according to IBISWorld (2016), “The industrial
production index reflects the health of the manufacturing sector; therefore, an increase in
the index represents growth in manufacturing output. The manufacturing sector is the
largest user of industry services. Consequently, as manufacturing output increases,
demand for long-distance freight trucking increases. The industrial production index is
expected to increase in 2016, representing a potential opportunity for the industry”.
 Threat
Lady Aries Express threats could be as followed Industry operators often implement
surcharges to mitigate fluctuations in the price of fuel. While demand for industry
services may decline due to rising prices, industry revenue increases in the short term
when operators implement additional fuel surcharges. However, in the long run, a decline

in diesel prices decreases costs and increases profit margins while lowering revenue. The
price of diesel is expected to remain unchanged in 2016, but its volatility poses a
potential threat to the industry. IBISWorld (2016)
Market Trends
The Department of Commerce reported that shipments of manufactured durable goods rose in
April to $22.7 billion. The amount being shipped has increased four of the last five months, as
companies continue to add to their inventories. Inventory levels for manufactured durable goods
increased 0.3% in April to reach a record $364.1 billion.
Target Market
The target market for Lady Aries Express will be any delivery service / broker that needs freight
to be pick/up or delivered to a specific area in the United States and Canada. Lady Aries Express
is licensed to handle both intra- State and Inter- State loads and we will work all over the United
States as over the road truck drivers. The industry’s that Lady Aries Express will service are:
 Manufacturers
 Any Merchant (Air Cargo, Port, Rail, Warehouse)
 Construction Companies
 Small Business
 Oil and Gas Industry
 The Lumber Industry
Competitive Advantage
Overall, the Freight Forwarding Brokerages and Agencies industry has a high level of

competition. Companies in the industry not only compete against one another, but they face
competition from shippers' in-house operations. IBISWorld, (2016)
Internal competition
An increasing number of industry operators are emphasizing customer service as an integral
function of their supply chain management processes. This growing attention to service has led
to innovation within the tracking portion of the business. Customers inquire as to the status of
their shipment; in response, industry operators have innovated new ways for customers to track
their package, including online freight tracking, which provides a real-time location and
estimated delivery date. IBISWorld, (2016)
External competition
For the most part, external competition stems from in-house operations of major shippers. While
this is not a major threat at the moment, this threat could increase as global networks grow and
consolidation continues. For example, major player United Postal Service is not only one of the
largest freight forwarders, but also the world's largest package delivery company. UPS's ability
to gain considerable market share in both industries highlights the growing threat of external
competition. IBISWorld, (2016)
Financial Management
Financial Projections and Costing
Fee for LLC in Houston, Texas $1200.00
Budget for Liability Insurance, permits and License $3000.00

New office space with big truck parking $45,000
Financing for Trucks $100,000
Accounting software, CRM software and payroll Software $3000.00
New Office Equipment and furniture $6000.00
Phone, Utilities, Electric $4000.00
First 3 months of operational cost to pay employees, and bills $38,000
Advertisement $2,000
Business Website $ 500
After Lady Aries Express has conducted their research and feasibility studies the company
will need about $205,000 start-up cost to get the business started in Houston, Texas.

IBISWorld, May 2016. IBISWorld iExpert Industry Summary 48412. Long-Distance Freight
Trucking in the US. Retrieved from
http://clients1.ibisworld.com.proxy.cecybrary.com/reports/us/iexpert/default.aspx?entid=1150
http://clients1.ibisworld.com.proxy.cecybrary.com/reports/us/industry/competitivelandscape.asp
x?entid=1209#MSC
ProfitableVenture.com, 2015. A Free Sample Trucking Company Business Plan Template
Retrieved from http://www.profitableventure.com/trucking-business-plan/
Genco, 2016. Transportation Industry Trends. Retrieved from
http://www.genco.com/Transportation-Articles/transportation-industry-trends.php

Appendixes

Yolvalda Jones Week 5 IP Lady Aries Express Business Plan

Recommended

Recommended

More Related Content

Similar to Yolvalda Jones Week 5 IP Lady Aries Express Business Plan

Similar to Yolvalda Jones Week 5 IP Lady Aries Express Business Plan (20)

Yolvalda Jones Week 5 IP Lady Aries Express Business Plan