Business Plan essay

Thank you f or your time! Sincerely, Daniel Kina Hath Aimed OUTLINE OF BUSINESS PLAN Introductory Elements Cover letter Introduction Description Ownership and Legal Structure Leadership Team Advantages Over Competition Marketing Products/Services Target Market Industry Financial Management Identification of Risks Financial Statements Funding Request Operations Location Hours of operations Day to day management Necessary equipment and production process Exit strategy Conclude ins Statement Statement of Purpose As Traversal we are requesting funding to start the operations of the company y.

We are requesting which would be used for: ; First to pay Off an existing debts Of the company. ; Then the money would be used to buy fleet of 6 buses to start off. ; After purchasing the buses, a group of people would be hired to completely change the inside of the buses to allow for a more comfortable, relaxing bus r did. After the buses are completed, six drivers would be hired to drive the buses. ; With the money left over, it would be saved in a bank account to keep the company running for as long as the company still has money. Executive Summary Traversal is corporation that is located in Chicago, Illinois.

The company will b e run by Daniel Kina as CEO and Hath Aimed as COO. Traversal is a luxury bus co many that gets customers from point A to point B in the most comfortable and efficient way possible. This is made possible by our professional team of bus drivers and our professionally built technology. This service is different from your traditional city bus because we pick you up at any point throughout the city. Just login to our app and tell us where your end location will be. Our app will then use gaps satellites to calculate how long it will be until a bus is at your location.

The app will even go as far as seeing how long it will take to get to your destination an d calculate a price for the service. There is no exchange of physical money between our drivers and our customers. All our transactions are done with credit card tab. We bill the credit card at the e end of each day so i you ride the bus six times in one day you will billed once for the whole dad y. Once on the bus you will have a seat waiting for you. While on the bus you can purchase snack s and drinks from our onboard vending machine. Again when buying food and drinks you do no t need physical none the bill is put on your tab for the day.

There is also a bathroom in the back of the bus so you never have to miss a bus because you need to use the bathroom. Traverse al is expected to capture at least 20% of the public transportation mind gusty and should be proof table within one year. To finance the startup of the company, Traversal is seeking $1 i n financing which is expected to be repaid in 5 years Detailed Description After learning about Auber the independent taxi service that is valued at over $ 40 billion we knew we wanted to get in this industry. Because Auber is a private taxi that en person orders for themselves or a small group of people it can get pricey.

We thought of Tray verbal as a much Cheaper Auber. Instead of just one person or a few friends aboard an Auber, Try avers is bus which can accommodate up to 25 people at a much cheaper cost. We think more pee pole would use Traversal over Auber or other public transportation because of the low cost. Of r a short term goal of 6 months we want to have at least 23 buses on the road and an average of 100 people using Traversal everyday. During this first 6 months we hope to employ at least 6 pee pole including 23 us drivers, me, a bus operator and a mechanic.

For our medium term goals which would be 1 to 2 years we hope to have over 600 daily users of Traversal. At this point we ho pee to have 45 buses and employ over 15 people, including 5 bus drivers, 3 mechanics, a CUFF , a COO, and 3 bus operators. For our long term goals of 5+ years we hope to have over 1 500 daily users. To achieve this we want to expand into the suburbs and into different towns. On CE we expand we would want at least 10 buses and 10 drivers. At this point we could see Auber wanting to buy us out because of our expanding business. Legal Structure/ leadership team Traversal is a C corporation that if located in Chicago Illinois.

Traversal has Dad Nile Kina as CEO and Hathaway Aimed as COO. Both are apart of the leadership t am. There is also a CUFF and a head bus operator that also make up the leadership team. Travel Sal has a total of 2 shareholders at this time which is the CEO and COO. Advantages over Competition With Traversal being able to accommodate up to 25 people on one bus we ha many advantages over our competition. When compared to Auber or Left Traversal is a much cheaper. Costing $510 less than both options. Traversal is just a little more than public transportation but the ride is much more convenient and comfortable.

For just a few more dollar s the experience cannot be compared because Traversal is that much better. Traversal is also more reliable than public transportation because the consumer knows exactly when Traversal WI II arrive to pick them up and drop them off. Traversal is also the only form of transportation t hat allows the rider to buy food and drinks while on route to their destination. Traversal is also the e only form Of transportation other than a plane that has a bathroom on board. Marketing Products / Services When applying for a membership, we will be offering 50% discounts on your n ext trip with Traversal buses.

Traversal will have security on board for passenger safe TTY and any controversy with the road. With every vehicle, there will be a monitored secure TTY camera on the front and back of the security bus. That way Traversal customers will not have e to worry about any stolen possessions, because they can easily show the ticket of the bus the y were riding, and have security look over in the camera. / Industry Traversal will be entering a tough market in the transportation industry. There will be income competition between Auber Drivers, Pace Buses, and the daily t axis drivers.

We believe our company will exceed customers expectations and will be guarantee deed to arrive on the desired time. We charge $5. 35 for non members on one trip, and $1. 00 for AC dive members. Being a member costs $20 a month. We feel that our prices are reasonable of r the electricity, security, Wife, and employees provided. Profit won’t be the best the first 6 MO nth due to popularity and location. Once we receive a good amount back we will start to focus on advertising to different states. Financial Management Identification of risks Traversal is a company that can have risks.

Our number one risk would be pee pole not using our service. The way we can lower this risk would be making our service cheaper f people are not using it and hope that we can make up the costs by selling food and drinks. A another risk could be is Auber or Left started using buses. This would also be really bad for our busing sees so at that point we would want to contact Auber or Left and see if we can get an agreement or for them to buy us. Another risk would be not having enough buses for our amount of customers This can easily be fixed by buying one or two more buses. One of our last risks as a business woo old be running out Of money.

At that point we would want to Offer heavy discounts to attract moor e people to use our service so we can not run out of money. If theses discounts were to fail we woo old want to start so sell of some of our assets like a bus or two so we would not go into debt. Funding Request As Traversal we are requesting SSL . 5 million to start the operations of the com panky. With this money $500,000 of it would be used to hire people to create the software to run the app and buses. Another $500,000 would be used to buy a 23 buses and completely chi angel the inside of them for our luxury experience.

With the last $500,000 it would be kept in the bank to pay for salaries for our employees. This also allows us to lower the risk on the business as because if need be we can use the $500,000 in the bank for an emergency. And Location Traversal will begin dispatching buses throughout Chicago downtown and us burs. We hope to soon start to expand to Springfield and Normal, IL. Traversal buses AR e environmentally friendly due to electric fueling. We had the support of Tests co. , to build electric ICC engines and chargeable battery.

This will decrease the likelihood of our buses need to s top at a gas station for fueling. Hours and Day to Day Management Traversal Employees will switching shifts every time the buses come back to t he Lot. Buses will be refueling every 5 hours and will be switching drivers and security y. For Chicago Downtown, 35 buses are scheduled to depart at 5:00 am and will be arriving a t 10:00 am. Then at 10:30 the employee’s shift switches and another 35 buses depart at 1 1 am to 4:00 pm. Same thing with the shifting of employees and charging buses will occur and then d apart at 5:00 pm to 10:00 pm.

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