Business Plan - Transport Company

Section 1: The Business

A. Description of the business

We are a transport company (owning five minibuses for start) which provides transportation (from home to school and back) for children attending primary and secondary school. Our core business is developed during the studying semesters, but during vacation the company also provides transportation service to different destinations. Our vehicles will be used during vacations in order to transport children to several camping sites within the country. As the schools have the obligation to install a one-week vacation during each semester when children are taken to visit museums and other cultural sites of the city, the company also covers this kind of services. Transportation in school-organized trips is to be provided according to contractual terms by our company too.

- The status

This company is new on the market, as we have considered it a niche in the transport services. In the first phase, we plan to take over some of the transportation needs of the high-school pupils. As the business develops in time, we intend to expand our range of services in all the districts of Bucharest and in the rural areas.

Our company will be a partnership between the principals stated in the cover shit. Each partner owns an equal number of shares.

- Development perspectives

We think that our business is going to be profitable because we came up on an entirely new market, having a high potential and because at the moment there are no direct competitors.

There are several basic needs of people, such as their children’s safety, which in these days of uncertainty and violence on the streets are not secured by any state or private transport company.

As we increase awareness among parents, we are confident that our range of customers will expand.

There are rural areas where transport is a big issue, as schools are located km. away from villages. We consider that people are willing and able to pay for a regular and safe transport, as they already pay expensive subscriptions for poor and unreliable conditions offered by private and state companies.

Our activity will not be interrupted during the holidays, as we intend to expand furthermore and to provide extrascholar services, such as transport for trips, camps, and cultural events.

- Start-up of the business

Our business will be set up as soon as the bank guarantees us the loan. Afterwards we will buy the first five vehicles and the necessary equipment. The main activity will start with the introduction of our services, planned to take place at the beginning of the scholar year ( in the first two weeks ).

- Operation

Our main activity will be performed during the week days, according to the pupils’ schedule.

In the weekend we can also provide transport to different sites if requested for an additional fee.

Part of the business is seasonal, as we expect that most of the revenues will come from transport provided during school semesters.

B. Service

We sell transport service for pupils attending primary and secondary school, aged between 6 to 14 years old.

- Benefits of our business

Our customers will in fact buy safety, comfort and certainty that their children will be well taken care of. Safety is our primary concern and the main objective to be reached . We chose Toyota minibuses because they are especially designed to ensure maximum of comfort on the road. Nowadays parents are not sure that when children leave for school they will actually get there safe and sound – we make sure that this issue is covered properly.

- Competitive advantages

Considering the fact that our direct competitor- R.A.T.B.- has poor conditions regarding the safety and comfort of its customers, we believe that the high quality of our service gives us a big advantage over R.A.T.B. Also, they do not have any specialized lines of transport for pupils, so we should be able to take over part of the daily passengers.