Last updated: July 27, 2019
Topic: ArtRadio
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Executive Summary:

Habibi transit is a company that will be based in Al Ain. Habibi will supply transit and logistics services to the concern clients in Al Ain, Abu Dhabi and all other metropoliss of UAE. The company will take stuffs and goods from provider and present it to industries and so take merchandises from makers and present it to the jobbers or retail merchants. It will be partnership concern. Habibi transit empowers person to lease a truck, of any size, for any extend that needs drawing. The logistics and transit industry is doing fast paces in the UAE, and specifically in Dubai. With model and real property betterment undertakings blaring and new existent ventures being reported twenty-four hours by twenty-four hours over the UAE, it is clear that the industry will maintain on turning in the stopping point & A ; average term. In the first twelvemonth the concern will acquire a loss of 87605 AED. The startup demands of the concern are AED 2530500.

Introduction:

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Transportation system industry in UAE is a booming industry. As the demand for touristry is increase the air and land transit is besides addition. The land transit is besides used for many fabrication concern to present natural stuffs and heavy stuffs from one topographic point to another. The concern that we are traveling to establish is transit concern through hauling. Hauling is a “ terrifying ” industry to be in at this clip. Yet top hauling executives say the economic downswing is no clip to take a path that is overly expedient on service as they adapt to industry overcapacity and shippers desiring stone underside rates. The name of our trucking transit concern is “HABIBI TRANSPORTATION” . The concern will be based in Al ain UAE.

Aim:

The aims of habibi transit for the following three old ages include:

  • Geting highest one-year gross every twelvemonth
  • Hire more truck driver
  • Expand the concern by spread outing market
  • Targeting the other metropoliss of UAE as good
  • Buying more advanced vehicle for transit

SALES Aim:

Gross saless Forecast

January

February

March

April

June

July

August

September

October

November

December

Unit of measurement Gross saless

Miles of Transporting

12,000

18,000

27,000

37,800

52,920

55,566

58,344

61,262

64,325

67,541

70,918

Customer histories

0

1

2

4

7

8

9

10

10

11

12

Entire Unit Gross saless

12,000

18,001

27,002

37,804

52,927

55,574

58,353

61,272

64,335

67,552

70,930

Unit of measurement Monetary values

Miles of Transporting

5

5

5

5

5

5

5

5

5

5

5

Customer histories

3500

3500

3500

3500

3500

3500

3500

3500

3500

3500

3500

Gross saless

Miles of Transporting

54600

81900

122850

171990

240786

252826

265468

278740

292677

307311

322676

Customer histories

0

3500

7000

14000

24500

28000

31500

35000

35000

38500

42000

Entire Gross saless

54600

85400

129850

185990

265286

280826

296968

313740

327677

345811

364676

Direct Unit of measurement Costss

Miles of Transporting

50.00 %

2

2

2

2

2

2

2

2

2

2

2

Customer histories

10.00 %

350

350

350

350

350

350

350

350

350

350

350

Direct Cost of Gross saless

Miles of Transporting

27300

40950

61425

85995

120393

126413

132734

139370

146339

153657

161340

Customer histories

0

350

700

1400

2450

2800

3150

3500

3500

3850

4200

Subtotal Direct Cost of Gross saless

27300

41300

62125

87395

122843

129213

135884

142870

149839

157507

165540

Mission:

The mission of habibi transit is to go the spouse of concern and assist them in operating expeditiously through effectual distribution services. For this intent the company will utilize best direction to give accurate and timely bringings to the clients.

KEY TO SUCCESS:

The cardinal success factor for habibi transit includes:

  • Proper deliver agendas will be made to give timely bringing
  • Enrolling dependable drivers who can drive safely
  • Forming an accurate communicating channel between drivers, company and clients.

Company Summary:

Habibi transit is a company that will be based in Al ain. Habibi will supply transit and logistics services to the concern clients in Al ain, abu dhabi and all other metropoliss of UAE. The company will take stuffs and goods from provider and present it to industries and so take merchandises from makers and present it to the jobbers or retail merchants.

Company Ownership:

The habibi transit will be a partnership concern between two friends. The company will be owned by me and my friend. After the old ages the concern will alter its type of ownership to Limited Liability Company because the company will spread out and we will portion the ownership of the company with the investors and we will give them about 20 % portion.

STARTUP SUMMARY:

Start-up Requirements

AED

Start-up Expenses

Stationery

10500

Legal

17500

Booklets

17500

Insurance

35000

Rent

42000

Licenses and Licenses

17500

Computer

10500

Website Development

70000

Entire Start-up Expenses

220500

Start-up Assetss

Cash

315000

Long-run Assetss

1925000

Other Current Assetss

70000

Entire Assetss

2310000

Entire Requirements

2530500

Company LOCATION AND FACILITIES:

The location of habibi transit is in Al Ain, united Arab emirates. The company is located near the mills countries. The services that company will supply to its clients will be available 24 hours. The installation of the company will be located near its mark market.

Servicess:

The hauling industry gives transit services to individuals or organisations looking to draw overpowering things. Habibi transit empowers person to lease a truck, of any size, for any extend that needs drawing. We will give this service to the full of the Al ain scope, and want to stretch from this base zone inside the initial five old ages of operation.

This service is given on two bases: for-contract and private carriers. Of these two fragments, Habibi Transportation will concentrate on the for-contract carriers, and, all the more peculiarly, the truckload ( TL ) and short of what truckload ( LTL ) parts.

Competitive Advantage:

The competitory advantage of habibi transit is the impossible industry experience and robust ill fame of its director. His organisation is similarly good known around its clients for traveling that extra stat mi in the client service division.

COMPETITIVE COMPARISON:

The rivals of habibi transit includesal sahra heavy equipments, Al walid equipment lease, bronze beach general catching, Bkler Dubai etc. all these transit companies are executing good in the industry and the entryway of habibi transit in industry may coerce them to take an aggressive action.

Industry Analysis:

The logistics and transit industry is doing fast paces in the UAE, and specifically in Dubai. With model and real property betterment undertakings blaring and new existent ventures being reported twenty-four hours by twenty-four hours over the UAE, it is clear that the industry will maintain on growwing in the stopping point & A ; average term. Such development of building in the UAE, anticipated for at least 10 old ages, will bring forth a steady entreaty for sums and sand ; this, therefore, produces a consistent and mounting involvement for tipper draw services in an officially extended supply commercial centre. One of the greatest giver to UAE economic system is the transportation and logistics industry which takes a duty in transporting of points, for illustration, crude oil excavation, hardware, nutriment material and other important merchandises either transported in or locally made crosswise over industrial installations in UAE.

The conveyance of these to the undermentioned terminal, which could be local or to terminals of the line crosswise over other universe markets. The local and planetary transportation and Logistics providers in UAE offer different kinds of trucking to convey lading by manner. They convey everything from letters to houses to cargo compartments, significant hardware, refrigerated, haz to populate animals crosswise over outskirts Emirates or GCC

The conveyance providers in UAE, support an sole demand of service, by and large highly reliable and resolved to convey merchandises firmly to the terminal client. With booming general shop concern crosswise over UAE. The great illustration of street lading is nourishment material conveyance.

Market Analysis:

The economic system in the UAE is ended up more miscellaneous and shows verification of power to defy outer stun. Solid funding in conveyance base and the world-wide desire of organisations like Emirates Airlines and DP World will to boot be solid positive constituents. In malice of the fact that the current oil monetary value blast is steering, the organisation anticipates that the UAE economic system will develop by 4.1 % for every annum throughout the undermentioned five old ages, which will assist the logistics industry.

Manufacturers often outsource the circulation of their merchandises to organisations that work in functioning one the sort of retail merchant or concern. Their bundled merchandises are on a regular basis delivered to stand out wholesaler/merchant, doing a consistent concern in transporting between the two countries.

Raw Material Suppliers dispatch extended sums of stuffs to immense makers in the northwesterly provinces. These stuffs by and big do n’t compel infrigidation or temperature control. Manufacturers support some on location carrying for these supplies and by and big have some take a breathing infinite in the affair of when conveyances could be accepted, with the exclusion of when projections are mixed up and supplies bead depression. Bundling supplies similarly must be transported to makers and are incorporated in this collection.

Wholesalers/Distributors that serve extended retail merchants amass truckloads of merchandises from the legion makers they serve. While they on a regular basis have their trucks or scattering implies, some of these organisations do n’t either in visible radiation of the fact that they are more modest or in visible radiation of the fact that they endeavor to utmost their guess in retentions. Others may compel excess hauling endorsing when they are working at bound nevertheless non ready to widen their transportation bound.

Market Analysis

Year 1

Year 2

Year 3

Potential Customers

Growth

Manufacturers

2 %

5,000

5,100

5,202

natural stuff suppleir

1 %

6,000

6,060

6,121

Wholesalers/Distributors

3 %

5,500

5,665

5,835

Entire

1.00 %

16,500

16,825

17,158

Selling Mix:

Monetary value:

The pricing of habibi transit is dependent upon stat mis for every many dirham of lading transported. We will be capable charge aggressive rates, as we have negligible operating expense contrasted with our challenger. Promotion:

Notwithstanding standard commercial patterns, Habibi Transportation will pick up important distinguishment through these excess promotional mediums:

  • Press intelligence sent to radio Stationss, day-to-day documents, and magazines.
  • we plan to advance loosely, in magazines and day-to-day documents, on Television and wireless, and on proclamations.
  • Radio advertisement on subsidiary Stationss

As an extra motive for clients and possible clients to remember the name, Habibi Transportation agreements to go around espresso mugs, T-shirts, pens, and other advertisement claims to fame with the organisation logo.

The finish of a cusp is to picture the organisation ‘s aims and points as an tempting utility. Habibi Transportation will make three press releases: one to be utilized to force gross revenues, one to describe the point in another market, and the 3rd to inscribe gross revenues copar

Topographic point:

The topographic point of habibi transit is in alain in UAE,

Product/ service:

Habibi transit is supplying trucking and logistics services to the concern clients.

FINANCIAL Plan:

Pro Forma Profit and Loss

2015

2016

2017

Gross saless

3038630

5087992

8242430

Direct Cost of Gross saless

1396115

2155916

3308095

Entire Cost of Gross saless

1396115

2155916

3308095

Gross Margin

1642515

2932076

4934335

Expenses

Marketing/Promotion

357000

280000

350000

Payroll

692864

910000

1015000

Truck Maintenance/Repair

27300

42000

66150

Depreciation

207669

314832

437304

Rent

126000

132300

138915

Utilities

12600

13230

13892

Payroll Taxs

208639

298193

400358

Insurance

42000

63000

87500

Licenses and Permiting

28000

35000

35000

Web Hosting and Development

14438

25200

26460

Entire Operating Expenses

1716509

2113755

2570579

Net income Before Interest and Taxes

-73994

818321

2363757

Earnings before interest taxes depreciation and amortization

133676

1133153

2801061

Interest Expense

13612

76913

123375

Net Net income

-87605

518987

1568270

Pro Forma Balance Sheet

2015

2016

2017

Assetss

Current Assetss

Cash

80350

64253

879711

Histories Receivable

418495

700742

1135187

Other Current Assetss

70000

70000

70000

Entire Current Assets

568845

834995

2084898

Long-run Assetss

Long-run Assetss

2537500

3762500

4987500

Accumulated Depreciation

207669

522501

959805

Entire Long-term Assetss

2329831

3239999

4027695

Entire Assetss

2898676

4074994

6112593

Liabilitiess and Capital

2015

2016

2017

Current Liabilitiess

Histories Collectible

237031

274862

429195

Current Borrowing

10500

0

0

Subtotal Current Liabilitiess

247531

274862

429195

Long-run Liabilitiess

446250

1076250

1391250

Entire Liabilitiess

693781

1351112

1820445

Paid-in Capital

2513000

2513000

2513000

Retained Net incomes

-220500

-308105

210882

Net incomes

-87605

518987

1568270

Entire Capital

2204895

2723882

4292148

Entire Liabilitiess and Capital

2898676

4074994

6112593

Decision:

From the above fiscal analysis and market analysis, it has been concluded that opening a transit concern in UAE is a good determination. The demand for logistics and transit services is increasing in UAE. The figure of building undertakings increase so the demand of the presenting natural stuff and heavy equipment from one topographic point to another is besides increasing.

Recommendation

From the above program and research, it is recommended that company should spread out its concern to other metropoliss of UAE besides as the demand is increasing and it’s a good chance for concern. Before get downing this concern, it is recommended that company should put attractive monetary values to derive clients as there are many rivals in the market so with high monetary value, habibi conveyances can non do a place in UAE transit industry.

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