Running Head: BAGGAGE MANAGEMENT AND TRUCKING BUSINESS PLAN BAGGAGE MANAGEMENT AND TRUCKING BUSINESS PLAN 2 Baggage Management and Trucking Business Plan . Table of Contents 1. Contents 41.Executive Summary 42.Company Summary 42.1.Services 42.2.Market Segments 52.3.Management 62.4.Marketing 62.5.Mission Statement 62.6.Environment 72.7.History of the Company 73.Services 83.1.Market Analysis 83.2.Market Breakdown 93.3.Market Strategy 103.4.Services Analysis 103.4.1.Market Description: Trucking 103.4.2.Industry Trends 113.4.3.Competition and Purchasing Patterns 113.4.4.Risks and Contingencies Associated with Finance 123.5.Business Counterparts and Participants 123.5.1.Trucking 133.5.2.Private Haulers 133.5.3.For Higher Carriers 134.Strategy and Implementation 144.1.Value in Top-Notch 154.2.Competitive Edge 154.3.Marketing Strategy 154.3.1.Marketing responsibilities. 164.3.2.Promotion. 164.3.3.Incentives 164.4.Sales Strategy 165.Management 175.1.Organizational Structure 176.Financial Plan 176.1.General Assumptions 186.2.Break Even 186.3.Pro forma Cash Flow 196.4.Balance Sheet 22References 23Appendices 23Projected Profit and Loss 2. Executive Summary Top Notch baggage management and trucking is a Nairobi based company that aims at becoming the largest trucking company within Kenya. Top Notch is focusing on the perishable goods industry at the initial stages with future plans of diversification and serve new industries. Venturing in perishable goods industry is due growth expectations that encourage. Besides the stable nature of the industry presents an all-round season market that gives Top Notch an advantage in generating stable ever-growing profit margins. 3. Company Summary3.1. Services Top Notch will offer both hiring services as well as private hauling and carrier services. Most of the business operations will be derived and based on primary producers and manufacturers of perishable goods that require quick delivery to the market. Both wide load and miniature load services will be provided by the company. The food industry is the major target in the business since purchasing variables in the industry are based on customer service, referrals programmes as well as historical reputations. 3.2. Market Segments Top Notch will primarily focus on serving four customer and market segments. The food industry will be given the first priority. This is because of the growth and versatility within the industry. Besides, the food industry presents an annual growth rate of about 4% with about 4000 customers with higher purchasing potential being identified per month. The subsequent segment is the horticulture industry that has a promising market with the advent of modern irrigation techniques. The industry has an estimated growth capability of 3% with some average of 1500 potential customers annually. The retail industry is another potential segment that presents complexity due to variation in customer base. The industry has an estimated growth rat ...

1. Running Head: BAGGAGE MANAGEMENT AND TRUCKING
BUSINESS PLAN
BAGGAGE MANAGEMENT AND TRUCKING BUSINESS
PLAN
2
Baggage Management and Trucking Business Plan
.
Table of Contents
1. Contents
41.Executive Summary
42.Company Summary
42.1.Services
42.2.Market Segments
52.3.Management
62.4.Marketing
62.5.Mission Statement
62.6.Environment
72.7.History of the Company
73.Services
83.1.Market Analysis
83.2.Market Breakdown
93.3.Market Strategy
103.4.Services Analysis
103.4.1.Market Description: Trucking
103.4.2.Industry Trends
113.4.3.Competition and Purchasing Patterns
113.4.4.Risks and Contingencies Associated with Finance
123.5.Business Counterparts and Participants
123.5.1.Trucking
133.5.2.Private Haulers
133.5.3.For Higher Carriers

2. 134.Strategy and Implementation
144.1.Value in Top-Notch
154.2.Competitive Edge
154.3.Marketing Strategy
154.3.1.Marketing responsibilities.
164.3.2.Promotion.
164.3.3.Incentives
164.4.Sales Strategy
165.Management
175.1.Organizational Structure
176.Financial Plan
176.1.General Assumptions
186.2.Break Even
186.3.Pro forma Cash Flow
196.4.Balance Sheet
22References
23Appendices
23Projected Profit and Loss
2. Executive Summary
Top Notch baggage management and trucking is a Nairobi based
company that aims at becoming the largest trucking company
within Kenya. Top Notch is focusing on the perishable goods
industry at the initial stages with future plans of diversification
and serve new industries. Venturing in perishable goods
industry is due growth expectations that encourage. Besides the
stable nature of the industry presents an all-round season market
that gives Top Notch an advantage in generating stable ever-
growing profit margins. 3. Company Summary3.1. Services
Top Notch will offer both hiring services as well as private
hauling and carrier services. Most of the business operations
will be derived and based on primary producers and
manufacturers of perishable goods that require quick delivery to
the market. Both wide load and miniature load services will be

3. provided by the company. The food industry is the major target
in the business since purchasing variables in the industry are
based on customer service, referrals programmes as well as
historical reputations.
3.2. Market Segments
Top Notch will primarily focus on serving four customer and
market segments. The food industry will be given the first
priority. This is because of the growth and versatility within the
industry. Besides, the food industry presents an annual growth
rate of about 4% with about 4000 customers with higher
purchasing potential being identified per month. The subsequent
segment is the horticulture industry that has a promising market
with the advent of modern irrigation techniques. The industry
has an estimated growth capability of 3% with some average of
1500 potential customers annually. The retail industry is
another potential segment that presents complexity due to
variation in customer base. The industry has an estimated
growth rate of about 3%, however, the rate varies in accordance
o weather conditions, regional imbalance and other associated
difficulties within the business locality. Therefore, the industry
boasts of 2000 potential customers per year. Finally, the
peripheral segment that aims at catching up with any emergency
or urgent customers has an average growth rate of 2% with the
chances of growth increasing with change in geographical
location with respect to the mode and means of transport. Such
a segment has a customer base estimate of about 500 customers.
3.3. Management
Top Notch will be led by Jonas Mikes a 10-years transport and
logistic industry veteran who boasts of various successful
projects across the country. During internship after college
education, Jonas Worked as a driver for Buzeki Haulers and
Logistics for two years. Due to need for diversity, Jonas moved
into the field of management for two years. Having acquired a
significant amount of skills, Jonas moved to Rongai freight

4. trucking limited. At Rongai, he was tasked with managing the
south rift wing. After three years, he was instituted as the
project manager of the company where he flagged off the
establishment of five logistics projects in north and two projects
at Busia’s Kenya Uganda Boarder as a linkage for foreign
partnership with Tororo cement factory and other freight
company’s such as Kampala Freighters and Jinja Import and
export limited. Owing to such Historical supply chain and
logistics management, he therefore opted for a solely owned
baggage management and trucking business company. 3.4.
Marketing
For effective marketing, there will be three unique marketing
techniques aimed at creating awareness about the company as
well as generation of new customers across the country. The
core strategy for such programs is conducting of promotions.
The focus will be on press release as well as advertisement
through use of multiple media. The subsequent efforts will lie in
utilization of incentives which will be mainly offered to
existing and persistent customers. One of the final efforts in
acquisition of customers will be by use of print outs of various
media such as brochures. Distribution of brochures will be done
through customer outlets as well as fitting some of the
brochures of freight and baggage vehicles.
Since to Notch is entirely customer centred aiming at becoming
a lead baggage company in the whole of Kenya, profitability
will be estimated within the first three months after
establishment and successful launching. The projection for year
one is 10 million and 40 million for year three. 3.5. Mission
Statement
The mission of Top Notch baggage management and trucking
company is to become a lead company serving Kenya’s
Perishable Goods industry.

5. 3.6. Environment
Top Notch company is a Rift valley-based company with its
headquarters in Naivasha. Other principal offices for the
company are located in Kitale, Eldoret Nakuru and Nairobi.
Jonas Mike is the President, Chief Executive officer (CEO), and
also the major shareholder. Jonas Mike has been a management
pioneer in logistics and transport companies across Kenya for
10 years.
3.7. History of the Company
The company has been in existence for one year. During the
one-year tenure, the company has managed to maintain financial
stability as a result of extensive knowledge and skills based on
industrial experience of the managerial team.
4. Services
The baggage management and trucking sector provides transport
services for individuals and companies that look for hauling
heavy baggage. The Top-Notch baggage services enables
individuals lease trucks of any given size for a project that
requires hauling. The services will be provided on a large scale
across the country. However, plans for expansion outside the
boarders will depend upon the successful operation in the
selected regions of Kenya within the first five years.
The service provision activities will be provided in two bases;
for hiring and as private carriage. The wide load and miniature
load truck segments will be the basis of formulating various
prices for the services offered. Target markets as well as
detailed services provision is discussed in the succeeding
sections.
4.1. Market Analysis
Given the opportunity to exploit the market within the transport

6. sector, Top notch will mainly focus on perishable goods in
order to be in a competitive position. The experience possessed
by the management personnel within the company. Therefore,
there is efficiency in servicing clients since there is an ever-
growing demand for highly reliable and effective transport
solutions under the logistics and transport sector.
4.2. Market Breakdown
There are several sectors to be served by the transportation
services to be initiated by the company. The primary sectors and
customer breakdown includes the food industry, horticulture
produce, retailers and emergency services. For efficiency
market ventures will be based on available data on the current
market share for each segment especially within Naivasha and
Nairobi which are currently under exploitation.
A huge number of enthusiasts within the field of transport have
exploited the market as well with their own fleets. On the other
hand, smaller counter-parts outsource services for the transport
function. The latter have much variations in their operations.
Nevertheless, they boast of some sort of stable and steady
demand due to highly reliable services and transport solutions
they offer. It is therefore upon our efforts that we have plans of
soliciting their customer hood.
4.3. Market Strategy
Top-Notch will primarily focus the marketing capital to selected
industrial niches. The narrowing down is a directive measure in
concentrating efforts to the segments to strengthen the company
at its early maturity stage. Besides, a narrow market segment
will help the company in developing and building on the
existing reputation in provision of highly reliable transport
services. Such focus will be a milestone achievement in
acquisition of referrals by friends and loyalties of the company.

7. On the other hand, the food industry is made up of companies
with varying requirements. Since Top-Notch has gained
necessary skills and knowledge in serving them, there is
valuable experience for serving such customers. The company
and its management have faith in increasing the fleet in order to
capture extra clients and offer better services to the available
clients.
4.4. Services Analysis
4.4.1. Market Description: Trucking
The establishment is majorly based on over the road transport
services together with storage for some goods. trucked goods
held usually weigh more than 101 pounds. The principle
operations are based on external shipment to other towns
designated as destinations by customers. Suburban areas are no
exception when it comes to delivery and pic-up of goods as
well.
Estimated Number of Kenyan establishments
200
Employees
2,000
Annual Sales
$2 million
Employees for each establishment
20 employees
Average sales for each establishment
$10,000
4.4.2. Industry Trends
With the ever-growing shortage of truck drivers, the company
seeks to adapt to the changes in the market environment in order
to maximize on its growth and associated opportunities. The

8. intermodal transporters also have a chance of benefitting from
such trends. Therefore, Top-Notch will utilize modern
technology in fleet management and inventory management to
have a larger market share among all the carriers.
Baggage management involving warehousing and logistics have
a lesser market share. Therefore, trucking is the main venture
that acts as a linkage to both warehousing and associated
logistics. It is thus outright that transportation services earn
more than warehousing unless the companies associated impress
self-owned transport systems.
4.4.3. Competition and Purchasing Patterns
The transport sector is much fragmented despite having key
players. There are many companies offering freight and trucking
services. The competitors for Top Notch are companies of
similar ranks majoring in similar market segments. The top of
all competitors are the companies associated with Food
processing transport services. Such companies pose much
competition. However most of them are based in the coastal
region where they mainly ferry imports from the port.
Companies with comparable fleets are few as well hence a
competitive advantage.
According to studies, customers within the food industry are
much sensitive with prices with much higher value put on
timely delivery, unique handling enhancements and just below
maximum truck capacity orders. The customer affiliates as well
as carrier’s positive reputation play a key role by having strong
influence for purchasing decisions.
4.4.4. Risks and Contingencies Associated with Finance

9. There is recognition of subjection to both market as well as
industrial risks. The main risks for the company include:
· Industrial High Concentration Risk. Since the company
operates within the favourable field, there is high chances of
new entrants in the industry. Therefore, any sluggish operations
and low turn outs especially in the food processing firms may
negatively influence the profitability of the company. For
mitigations, the company is aiming at diversity in trucking in
that, other industries will be included in the business as well.
· Operation Risks. There is recognition of inherent problems
and threats in baggage transport. Any baggage damages may
result in undermining the profits of the company. For reduction
of such risks all the insurance policies have been maintained to
alleviate any issues arising due to cargo damages.
4.5. Business Counterparts and Participants
4.5.1. Trucking
The field is majorly exploited by coastal populations especially
around the exporting and importing ports. Therefore, the
mainland business operations are left to individual companies
which strive to acquire the best services from nearby
companies. However, some companies are not Luck enough and
they therefore sought for individually owned trucks which
present higher costs to the company in terms of maintenance
and payment of the employees who are mainly drivers and
mechanics.
Air transport and rail transport are efficient. However, both of
them are inaccessible and pose challenges of high handling
costs with no provision of special facilities for perishable
goods. due to such reasons, trucking services are there to
provide linkage between air and road transport as well as rail to

10. road transport services. Mashallah and Buzeki offer public
trucking services for most industries.
4.5.2. Private Haulers
They comprise a large percentage of the motor vehicle
operations industry. There services thus seem to be over-rated
based on the assumptions that they are partially a monopoly.
However, they offer a higher amount of revenue to the
government since they take part in the business steadily with no
breakdowns and failures. Shree haulers are private haulers but
mainly deal with the products associated with their chain of
companies across the countries of East Africa.
4.5.3. For Higher Carriers
They offer their trucks to companies at a fee. Nevertheless,
there service provision is much profitable but also cumbersome
due to complexity in management of fleets given out to perform
operations for individuals whose whereabouts are not well
known. Overloads and damage to trucks is common within the
provision for such services. One of the major hirers are the
Rongai Haulers.
5. Strategy and Implementation
Strategies of operation are embedded in timely delivery,
competitive price formulation mechanisms and utilization of
highly qualified drivers. Besides, the Top-Notch aims at
running independently with no traceable imprints of contractual
business. It means that the company will be able to run on its
own from hiring to sourcing. Trucks for the company will range
from 200ft containers to minivans. At this stage the company
will be sufficiently self-reliant and thus all operations are
deemed to run smoothly once all strategies are effectively

11. spelled out.
The primary components of the latter strategy can be summed
up as follows;
· Expansion of the fleet of trucks. Top Notch is currently
engaged in expanding the existing fleet. The act will allow for
expansion and increase in number of customers to be served.
· Establishment of independent reputation and status. Due to
operation as a sharing, the company is intensively working on
plans of acquiring a fully owned trucking service provision
system especially in the long-range haul operations. already, a
reliable truck dealer has been established and therefore,
everything will be initiated once all the resources and other
necessary requirements are pooled together. The company will
therefore, be able to serve clients out of its domain once the
resources and operational tools are fully established.
5.1. Value in Top-Notch
Top Notch offers the following advantages over other
companies;
· High quality Services. We offer clients prompt, reliable,
courteous and value-added services. The company already has a
reputation for punctuality in delivery as well as highly rated
drivers in the industry. Therefore, building on the reputation is
the only requirement as of now.
· Highly competitive and incomparable rates. We will offer the
clients such rates due to the low inputs as well as minimal start-
up capital.
· Unique package handling mechanisms. Already safety
equipment which are highly dependable are being serviced in
preparation for the operations ahead. Other equipment will be

12. provided as a way of stabilizing baggage handling procedures.
Therefore, customers have up to 99.9% safety of their cargo and
miniature baggage as well.
5.2. Competitive Edge
The core strength of the company lies in a wide industrial
experience with a concrete reputation base on the owner Jonas
Mikes. The company is as well known among the customers for
offering high quality customer service in the customer care and
services unit within the company.
5.3. Marketing Strategy
Our services are offered as solutions to several companies in the
target market segments. Such segments need quick, safe and
high-quality handling and delivery of perishables. The Plans are
aimed at international market ventures and hauling of any type
of baggage, the following are the fundamentals of marketing
plan:
5.3.1. Marketing responsibilities.
There will be an extensive promotion-based campaign. Two
effective goals must be accomplished within the promotional
campaigns.
· Attraction of quality customers and service persons.
· Attraction of constant and consistent customers who need
hauling services.
5.3.2. Promotion.
· Radio broadcasts, TV shows, newspapers as well as
magazines.

13. · Billboards as well as brochures
5.3.3. Incentives.
Incentives will be given through customers. Top Notch will be
the label on mugs, pens, caps, T-shirts and other advertising
equipment.
5.4. Sales Strategy
There will be part time sales personnel who will work in far off
places for the purposes of making the company known to almost
all Kenyans of all ranks. According to customer sample survey,
customers have interest in new enhanced services to be provided
by our company. Therefore, the company seeks to identify a
customer base specifically with special orders that require more
attention during transit. Thus, new trucks featuring advanced
equipment such as high class long term refrigerators will be
acquired to facilitate the necessary processes.
6. Management
For reduction of overhead, the company’s management is
minimized. All the executive decisions are made by Jonas Mikes
the CEO and the president of the company. Most of the sales
leads are also generated by him. Now Liz Dennis works as the
executive secretary. She is responsible for answering inquiry
calls as well as maintenance of the customer database.
6.1. Organizational Structure
The management philosophy is based on personal responsibility
as well as mutual respect. Such philosophy maintains and
stimulates achievement and productivity with emphasis on
customer-oriented service as well as for fellow employees.
therefore, the overall structure is linear having all
responsibilities for decision making thrust unto the staff.
7. Financial Plan
To meet the minimum requirements for the business, the

14. company will raise $100,000 for purchasing of equipment to be
at bar with the needs of the industry. An increase in fleet will
be of importance in the efforts of widening the market base as
well as growth in sales.
7.1. General Assumptions
Year
Year
2018
2019
Plan Month
1
2
3
prevailing interest Rate
10.00%
10.00%
10.00%
Long-term Interest Rates
10.00%
10.00%
10.00%
Tax Rates
25.42%
25.00%
25.42%
Others
0
0
07.2. Break Even
The break-even is indicated in the table below
BREAK-EVEN
Per month Revenue Break-even
$6,206

15. Assumptions:
Average variable cost (%)
20%
Fixed Monthly cost
$4,965
7.3. Pro forma Cash Flow
2018
2019
2020
cash received
cash from operations
cash sales
$40,000
$100,000
$160,000
cash from receivables
$26,067
$44,100
$74,100
Sub total
$66,067
$144,100
$234,100
Additional Cash Rewards

16. Additional cash received
sales tax and VAT
$0
$0
$0
current borrowing
$0
$0
$0
Other liabilities
$0
$0
$0
New Liability
$100,000
$0
$0
current assets
$0
$0
$0
long term assets
$0
$0
$0
investments received
$0
$0
$0
Sub Total Received
$166,067
$144,100
$234,100

17. Expenditures
expenditures from operations
Spending cash
$15,000
$25,000
$45,000
bill payments
$290,000
$56,000
$90,535
Sub Total spent
$305,000
$81,000
$135,535
additional expenditure
pay outs
$0
$0
$0
borrowing repayment
$1,800
$3,500
$2,500
other liabilities
$0
$0
$0

18. long term liabilities repayment
$5,500
$4,000
$4,000
purchase of other assets
$0
$0
$0
long term assets purchase
$62,500
$0
$0
dividends
$0
$0
$0
Subtotal
$69,800
$7,500
$6,500
7.4. Balance Sheet
The table below shows the trucking balance sheet for 2018 to
2020
2018
2019
2020
Assets
current assets

19. cash
$2,200
$31,000
$32,000
accounts receivable
$1,900
$4,500
$7,500
other current assets
$0
$0
$0
SUB TOTAL ASSETS
$4,100
$35,500
$39,500
long-term assets
long term assets
$80,000
$80,000
$80,000
accumulated depreciation
$4,400
$6,500
$9,500
TOTAL LONGTERM ASSETS
$75,600
$73,500
$70,500
TOTAL ASSETS
$79,700
$109,000

20. $110,000
liabilities and capital
current liabilities
accounts payable
$2,800
$5,000
$7,500
current borrowing
$8,000
$4,700
$2,200
other current liabilities
$250
$250
$250
SUB TOTAL CURRENT LIABILITIES
$11,050
$9,950
$9,950
long term liabilities
$69,000
$65,000
$56,000
TOTAL LIABILITIES
$80,050
$74,950
$65,950
Paid in Capital
$0
$0

21. $0
retained gains
$1,200
$1,500
$35,000
earnings
$3,000
$35,000
$50,000
TOTAL CAPITAL
$4,200
$36,500
$85,000
TOTAL CAPITAL AND LIABILITIES
$84,250
$111,450
$150,950
Net worth
$4,200
$36,500
$85,000
Note;
The long term projected cash flow in the amounts of $100,000
will be received in May of 2018 thus it is reflected in the
increment of the lengthy borrowing for the month. The company
will purchase the first two trucks in June and July. such
expenditures are included in the projected cash flow.
8. References
CHIRCHIR, M. M. K. (2016). LOGISTICS OUTSOURCING
AND PERFORMANCE OF HORTICULTURAL FIRMS IN
NAIROBI COUNTY (Doctoral dissertation, DEPARTMENT OF
MANAGEMENT SCIENCE, SCHOOL OF BUSINESS,
UNIVERSITY OF NAIROBI).
Christopher, M. (2016). Logistics & supply chain management.
Pearson UK.

22. Hertz, S., & Alfred son, M. (2003). Strategic development of
third party logistics providers. Industrial marketing
management, 32(2), 139-149.
Huang, G., Xu, X., Song, H., & Lim, H. (2018). Analysis on the
Development of International Freight Forwarding Company-
Taking Changbao International Freight Forwarding (Shanghai)
Co., Ltd as an Example. GLOBAL FINANCE REVIEW, 1(1).
KANJA, D. W. (2017). INFLUENCE OF LOGISTICS
MANAGEMENT ON SUPPLY CHAIN PERFORMANCE IN
RETAIL CHAIN STORES IN KENYA: A CASE OF
NAKUMATT HOLDINGS LIMTED. Strategic Journal of
Business & Change Management, 4(2).
Nowakowska, M. (2015). Safety of Supply Chain of Kenya’s
Cut Flower Industry. Case of Kongoni River Farm. Logistics
and Transport, 26(2), 43-48.9. Appendices
9.1.1. Projected Profit and Loss