A Transportation Business Plan is crucial in starting a new, expanding your current, or buying an existing transportation business. Dream Team Capital has developed numerous Transportation Business Plans for individuals across South Africa.
The Transportation Sector
The volume of goods transported increased by 5, 2 % in June 2019, when compared to the corresponding period in 2018, which also resulted in growth in income for growing by 4, 3 % over the same time frame. Income from freight transportation also increased, by 4, 4 % in the second quarter of 2019 when compared to 2018. The main driver behind this is the increase in the movement of mining and quarrying products, which grew by 16, 9 % and contributed 6 % to the overall total.
Seasonally-adjusted payload transportation increased by 1, 6 % in the second quarter of 2019 when compared to the first quarter of the year, which shows the growth is encouragingly continuing this year. This growth was driven by a 1, 4 % increase in road freight (1, 1 % of the overall total), and a 2, 3 % increase in rail freight (0, 5 % of the overall total). Passenger journeys across the rail network decreased by 15, 3 % in June 2019, when compared to the same period last year.
The corresponding income actually increased by 1, 4 % over the same time frame, which means people are travelling less and it is costing more. Seasonally-adjusted passenger journeys were down 0, 8 % in the second quarter of 2019 when compared to the first three months of the year. This is due mostly to rail passengers decreasing by 12, 4 % (- 5, 2 % of the overall total).
Road passenger journeys increased by 7, 5 % but overall journeys were down, suggesting people are arranging their own transport more often and are not relying on public transport. Public transport has a very poor reputation in South Africa and is only going to deteriorate further as nothing has been done to fix or modernise the infrastructure for quite some time.
There are also issues with the road network, which takes a hammering every day due to the vast number of trucks that traverse South Africa on a daily basis. Unlike many countries where internal freight transport is split between road and rail, South Africa relies heavily on its road transportation systems because of the insufficient capacity and reliability of trains.
Key elements for a coherent Business Plan include:
•Executive summary: This is an introduction of your company, financial overview, and the business opportunity. It also includes information on your target market, competition, and management team.
•Industry analysis: This section provides an overview of the industry, as well as its size and growth rate and growth potential. List the players in the industry, as well as the key success factors.
•Market analysis: Discuss the market segments, as well as their needs and preferences. Conduct a segment attractiveness assessment in order to decide on your target market.
•Competition analysis: This section provides information on direct and indirect competition.
•SWOT analysis: List the strengths, weaknesses, opportunities and threats applicable to your company.
•Marketing plan: Describe your initiatives and strategies for growing revenue, enhancing competitiveness, and enhancing efficiency. Include an advertising and promotion plan, to discuss your branding and positioning.
•Implementation plan: This section discusses your organisational structure, as well as the roles and responsibilities of management in each aspect of running the business.
•Operational plan: Provide a diagram of the routes you intend using, and processes for monitoring and evaluating the business.
•Financial projections: Documents including; the management account, income statement, balance sheet, cash flow, cash forecast, break even analysis, loan amortisation schedule and fixed asset schedule with ratios, graphs, and calculations.
•Appendices: Statutory information needed by funders in an application (contact us for the complete list).
At Dream Team Capital…
We understand the complexities of the criteria and requirements for a custom and detailed business plan. Whether you are using the plan to raise funding and/or non-repayable business grants, we guide you through the procedure and provide access to our network of funders across the country.
Let us help you with the development of your Transportation Business Plan today!
Contact us for more information and assistance.