Executive Summary
GAL Freight Brokerage is a global supplier of air, marine, and land-based logistics.We take pleasure in our capacity to develop and implement creative, economical solutions to even the most challenging problems in global logistics. GAL Freight Brokerage has developed since its start into a top supplier of supply chain management and third-party logistics (3PL) services to businesses in North America. Our customers have grown to depend on us to assist them in advancing their companies via the most excellent level of honesty, creativity, and dependable service throughout the several sectors we serve, including retail, consumer packaged goods, automotive, and countless more. GAL Freight Brokerage, a leading provider of sophisticated logistics services throughout the country, specializes in over-dimensional freight services. GAL Freight Brokerage organizes trustworthy and certified transportation solutions across North America to guarantee that your product gets to its destination on time every time.
Problem Summary:
When you use a freight brokerage to handle your shipping requirements, they become an extension of your transportation network and your right hand. Some brokerages won’t get there on time, won’t let you know when to anticipate deliveries, and won’t accept responsibility if your freight is damaged while it is transported.
Solution Summary:
We at GAL Freight Brokerage require maintaining a clear and consistent line of communication. We demand the collection and delivery of your freight, as well as the procedures that must be done to ensure its smooth passage, be prioritized and communicated clearly and consistently. We will collaborate with our customers to fulfill their deadlines and serve their clients as they accomplish their objectives.
Industry Overview:
Industry sources claim that US Freight brokerage is increasingly integrated with the freight business. Over time, US players have handled an increasing quantity of submissions. Additionally, the USMCA is anticipated to facilitate cross-border trade and standardize supply networks throughout North America. Businesses like brokerages, which rely significantly on carriers, are adversely affected by the prolonged truck driver scarcity in the US market. This situation compels the freight brokers to provide the shippers with greater quotes, ultimately increasing prices and market competitiveness. The US less-than-truckload (LTL) market is characterized by fierce market competition. To promote the next phase of profit development, LTL freight brokers are applying innovations in North American LTL.
Financial Forecast:
Business Description
Business Name: GAL Freight Brokerage
Chief Executive Officer: GEORGE LAWSON
Management Team:
| Name | Designation |
| Grace Lim | Chief Financial Officer |
| Eloiza Cooper | Chief Technical Officer |
| Arthur James | Chief Operations Officer |
| Dominique Roque | Chief Commercial Officer |
Legal Structure: LLC
Locations: GAL Freight Brokerage is an experienced freight brokerage company operating out of Houston, Texas.
Mission
“Providing global transportation solutions that enable individuals to prosper.”
Vision
“To be the most in-demand transportation service worldwide.”
Products and Services:
Supply Chain Solutions
Whether you want to ship by land, air, or sea, our team of professionals is here to help you every step.
Air Freight Transportation
GAL Freight Brokerage provides air freight transportation services to all significant trade locations through our vast network of airline and freight forwarding partners.
Land Freight Transportation
GAL Freight Brokerage’s land transportation business offers our clients dependable, effective truckload and LTL services for local and domestic shipments.
Warehousing and storage Our customers may store and ship their products anywhere in the globe with the help of our storage and distribution services.
Financial Overview
Fund Usage
| Key Metrics | |||
| 2023F | 2024F | 2025F | |
| Earnings | |||
| Revenue | $8M | $23M | $38M |
| Gross Profit | $5M | $14M | $23M |
| Gross Margin | 60% | 59% | 59% |
| EBIT | $2M | $7M | $12M |
| EBIT Margin | 25% | 31% | 32% |
| Liquidity | |||
| Current Ratio | 5 | 6 | 6 |
| Cash Ratio | 4 | 5 | 5 |
| Others | |||
| Average CAC | $18 | $20 | $22 |
| Inventory Turnover | 11 | 11 | 11 |
SWOT ANALYSIS
| STRENGTH | WEAKNESS |
| Detailed knowledge of important customer industries competent workforce dependable machinery and infrastructure gained expertise in accounting | New to the Logistics and Freight Forwarding Sector Pre-owned machinery might experience early degradation. |
| OPPORTUNITY | THREAT |
| A growing solution exists for industry-focused solutions and sophisticated logistical capabilities. Acquisition of new capital rounds. Establishing affiliate relationships with similar businesses and creating proprietary goods | Changes to the law can impact the company. The price of insurance is constantly rising. Increasing input costs may result in higher prices. |
Objectives
- To establish a service-based business with the primary goal of consistently exceeding consumers’ expectations.
- To serve 20% more customers yearly by providing outstanding service and earning recommendations from others.
- To create a start-up firm that is successful and sustainable.
Founder
George Lawson
Chief Executive Officer
George Lawson had a varied career before he decided to work in transportation. George’s first position in the transportation industry was as a commercial over-the-road driver in 1978. Before moving to a better financial opportunity with an up-and-coming broker/carrier MSB Logistics, Inc., George spent three years at Bramel expanding his client book of business and carrier base. With specialization in refrigerated and perishable freight, George has 40 years of combined experience in trucking, dispatching, and brokering. With several devoted carriers and large shippers, he has established ties of trust.
Management Team
Grace Lim
Chief Technical Officer
Grace Lim also worked in a variety of industries before choosing transportation. With R & T Truck Lines, Lubbock, Texas, Grace began her career in transportation in 1987. She was in charge of sending out drivers and allocating trucks to cargo. Grace oversaw all facets of R & T’s accounting, including preparing quarterly reports for submission to the Texas Employment Commission and the IRS, weekly payroll, bank deposits, reconciliation of bank statements, posting, filing, 1099s, and W-2 forms.
Arthur James
Chief Operations Officer
In 1988, Arthur James started his employment as an assistant traffic manager at Berties, John & Irene in Phoenix, ArizonaAfter two years, Arthur changed careers, becoming a transportation broker, and took a job with Truckers Exchange in Colton, California. He was responsible for sales, negotiations, dispatch, and scheduling. In May 2018, George, Grace, and Arthur founded GAL Freight and American Freight Brokers, respectively. The three get along well and have a passion for the industry. They are motivated to provide the greatest freight brokerage service. For carriers, this implies that they provide lucrative, hassle-free chances for freight, after which you are promptly compensated. This enables shippers to ship with confidence because they know their goods are being handled expertly. At a cost that matches your budget, every detail is properly disclosed, watched over, and carried out perfectly. Integrity, worth, experience, and sincerity.
Organogram
Industry Analysis
Industry Overview
Any person or business that serves as a go-between for a shipper and a motor carrier is known as a freight broker. The Shipper hired them under a contract. The flow of commodities across a complicated network from the point of origin to the end of the destination is made more accessible by their job. Negotiations between the carrier invoice rate and the shipper billing rate are how they make money. To any Freight Broker, they provide a license. In the United States, there are 17,000 freight employees. The need for freight brokers is due to several factors, including Utilizing the connection and cutting-edge technology of the broker, reducing shippers’ freight costs, increasing scalability, comprehending market trends, reducing transport time, and ensuring legality.
Companies that handle freight brokerage make transporting products across international boundaries easier for people and businesses. By connecting clients with shippers and transportation firms, freight brokers offer a service. The freight brokerage market in the United States is divided into segments based on service (less than truckload (LTL), full truckload (FTL), and others), as well as end users, distributive trade (wholesale and retail segments, including FMCG), and other end users (telecommunications, pharmaceutical).
With a predicted CAGR of 6.3% from 2022 to 2031, the worldwide freight brokerage industry, valued at $48.1 billion in 2021, will increase to $90.7 billion by 2031. The End Use Industry, Customer Type, Services, and Mode of Transport segments make up the freight brokerage industry.
Due to a severe slowdown in the supply chain, a decline in company confidence, and growing fear among specific client groups, the COVID-19 problem has caused uncertainty in the market. Everywhere throughout the world, strict limitations might last for days or even months. Essential supply chains in the logistics and transportation sector are constrained due to the coronavirus epidemic. However, the effects vary depending on whether the supply chain is in the air, on land, or at sea. The COVID-19 epidemic has also directly impacted logistics companies, which handle commodities’ flow, storage, and transfer. Logistics companies support trade & commerce and assist companies in getting their goods to clients as a crucial component of value chains domestically and internationally. As a result, the disturbance of the supply chain brought on by COVID-19 is anticipated to affect the logistics industry’s competitiveness, economic growth, and job losses, which will impede the expansion of the freight brokerage sector.
The expansion of the international freight brokerage market is predicted to be aided by factors such as an increase in trade activities worldwide, the development of the e-commerce sector, and the rising popularity of consolidated air freight services over the forecast period. The rise in direct-to-consumer (DTC) logistics usage, with insufficient infrastructure and increasing logistics costs, is anticipated to impede the expansion of the worldwide market throughout the anticipated time frame. Additionally, it is expected that the freight brokerage sector will soon benefit from the growth of the digital freight forwarding sector and the use of freight brokerage services for cost- and lead-time-saving.
Freight brokers have many chances to change the industry thanks to tech-enabled services. Businesses like Transfix, Convoy, Uber Freight, and Loadsmart employ a variety of algorithms to match several carriers with cargoes depending on the origin, destination, cost, kind of load, and time. Traditional brokerage causes shipping delays or problems, which are hard to assess. Load-matching and real-time pricing are now accessible to newcomers and established players thanks to the integration of digital freight brokerage. On top of such data streams, however, more complex analytics solutions are being developed by visibility solution providers. Trucks now have a variety of gadgets and software installed. By using this information, 3PLs will be able to assist carriers in making the most use of their resources while also helping shippers in cost-effective shipping schedule optimization.
Traditional firms are joining the market with significant investments to take advantage of the expanding potential in this industry. The digital market now includes several established businesses. One example of how enterprises are fusing artificial intelligence and automation to create customer-driven solutions is XPO Connect. By gaining insight into engagement metrics and monitoring tools, the platform enables users to locate capacity, book loads, schedule upcoming movements to cut down on empty miles, and improve visibility and overall management of the supply chain.
Market Size
Competitive Landscape
The U.S. freight brokerage market is somewhat fragmented, with a mix of big regional businesses, big international players, small and medium-sized local players, and a select few market participants. C.H. The leading companies in the sector are Hub Group/Mode Transportation, XPO Logistics, and Robinson. The freight brokerage industry is highly concentrated, with the top 8 to 10 businesses accounting for more than one-third of total gross sales.
Following are some of the major players:
- CH Robinson
- Total Quality Logistics
- Echo Global Logistics
- XPO Logistics Inc.
- Worldwide Express
Marketing Plan
GAL Freight Brokerage will be able to attract clients through a website, marketing in trade publications, and networking based on many years of business expertise. GAL will convert these leads in to clients through our specialist expertise, which translates to better service offerings.
Marketing Budget
Total budget for projected years:
The following graphs indicate budget allocation across projected years:
Financials
Earnings
Liquidity
Revenue
Cost of Goods Sold
Operating Cost
| Cash Flow Statement | 2023F | 2024F | 2025F |
| Cash Flow from Operating Activities | |||
| EBIT | -$25,471 | $117,410 | $162,139 |
| Depreciation | $2,000 | $3,351 | $4,634 |
| Payables | |||
| Salaries payables | $14,750 | $16,000 | $19,400 |
| Total payables | $14,750 | $16,000 | $19,400 |
| change in payables | $14,750 | $1,250 | $3,400 |
| Receivables | |||
| Revenue related receivables | $46,688 | $79,064 | $99,960 |
| Total receivables | $46,688 | $79,064 | $99,960 |
| change in receivables | -$46,688 | -$32,376 | -$20,896 |
| Inventory | |||
| COGS inventory | $56,725 | $96,102 | $121,502 |
| Total inventory | $56,725 | $96,102 | $121,502 |
| change in inventory | -$56,725 | -$39,377 | -$25,399 |
| Net cash flow from operating activities | -$112,134 | $50,259 | $123,877 |
| Cash Flow from Investing Activities | |||
| R&D | $25,000 | $50,680 | $48,083 |
| Web Development | $15,000 | $10,136 | $9,617 |
| Miscellaneous | $10,000 | $6,757 | $6,411 |
| Net cash flow from investing activities | -$50,000 | -$67,573 | -$64,110 |
| Cash Flow from Financing Activities | |||
| Equity | $500,000 | ||
| Net cash flow from financing activities | $500,000 | ||
| Net (decrease)/ increase in cash/ cash equivalents | $337,866 | -$17,315 | $59,767 |
| Cash and cash equivalents at the beginning of the year | $0 | $337,866 | $320,551 |
| Cash & cash equivalents at the end of the year | $337,866 | $320,551 | $380,318 |
| Balance Sheet | 2023F | 2024F | 2025F |
| Non- Current Assets | |||
| R&D | $25,000 | $75,680 | $123,763 |
| Web Development | $15,000 | $25,136 | $34,753 |
| Miscellaneous | $10,000 | $16,757 | $23,168 |
| Total non- current assets | $50,000 | $117,573 | $181,683 |
| Accumulated Depreciation | -$2,000 | -$5,351 | -$9,985 |
| Net non- current assets | $48,000 | $112,222 | $171,698 |
| Current Assets | |||
| Inventory | $56,725 | $96,102 | $121,502 |
| Cash | $337,866 | $320,551 | $380,318 |
| Receivables | $46,688 | $79,064 | $99,960 |
| Total current- assets | $441,279 | $495,717 | $601,780 |
| Total assets | $489,279 | $607,939 | $773,478 |
| Liabilities | |||
| Accounts payable | $14,750 | $16,000 | $19,400 |
| Total liabilities | $14,750 | $16,000 | $19,400 |
| Equities | |||
| Equity | $500,000 | $500,000 | $500,000 |
| Retained earnings | -$25,471 | $91,939 | $254,078 |
| Total equity | $474,529 | $591,939 | $754,078 |
| Total liabilities & equities | $489,279 | $607,939 | $773,478 |
| Salaries | 2023F | 2024F | 2025F |
| Management & Operations | |||
| CEO | $24,000 | $24,000 | $24,000 |
| COO | $0 | $0 | $21,600 |
| Head of HR | $0 | $0 | $0 |
| Total | $24,000 | $24,000 | $45,600 |
| Marketing & Sales | |||
| Marketing Manager | $15,000 | $30,000 | $30,000 |
| Regional Representative | $108,000 | $108,000 | $108,000 |
| Online Store Manager | $12,000 | $12,000 | $12,000 |
| Digital Marketer | $0 | $0 | $19,200 |
| Total | $135,000 | $150,000 | $169,200 |
| Finance & Accounting | |||
| CFO | $0 | $0 | $0 |
| Bookkeeping Personnel | $18,000 | $18,000 | $18,000 |
| Audit Personnel | $0 | $0 | $0 |
| Total | $18,000 | $18,000 | $18,000 |
| Total Salaries | $177,000 | $192,000 | $232,800 |
| Non- Current Asset Schedule | 2023F | 2024F | 2025F |
| R&D | $25,000 | $75,680 | $126,147 |
| depreciation | NA | NA | NA |
| accumulated Depreciation | NA | NA | NA |
| Net book value | $25,000 | $75,680 | $126,147 |
| Web Development | $15,000 | $25,136 | $35,229 |
| depreciation | NA | NA | NA |
| accumulated Depreciation | NA | NA | NA |
| Net book value | $15,000 | $25,136 | $35,229 |
| Miscellaneous | $10,000 | $16,757 | $23,486 |
| depreciation | $2,000 | $3,351 | $4,697 |
| accumulated Depreciation | $2,000 | $5,351 | $10,049 |
| Net book value | $8,000 | $11,406 | $13,438 |
| Total Net book value | $48,000 | $112,222 | $174,814 |
| Total Depreciation | $2,000 | $3,351 | $4,697 |
| Total Accumulated Depreciation | $2,000 | $5,351 | $10,049 |
Assumptions
| Investment Assumptions | 2023F | 2024F | 2025F |
| Equity Injection | $500,000 | ||
| Total Capital | $500,000 | ||
| R&D | $25,000 | $50,680 | $48,083 |
| % of initial equity | 5% | ||
| % of last year’s ending cash balance | 15% | 15% | |
| Web Development | $15,000 | $10,136 | $9,617 |
| % of initial equity | 3% | ||
| % of last year’s ending cash balance | 3% | 3% | |
| Miscellaneous | $10,000 | $6,757 | $6,411 |
| % of initial equity | 2% | ||
| % of last year’s ending cash balance | 2% | 2% | |
| Working capital | $450,000 | $270,293 | $256,441 |
| % of initial equity | 90% | ||
| % of last year’s ending cash balance | 80% | 80% |
| No. of Sales Assumptions | 2023F | 2024F | 2025F |
| Total Promotional Budget | $135,000 | $175,690 | $217,975 |
| as % of working capital | 30% | 65% | 85% |
| In- person Marketing | |||
| proportion of total budget | 35% | 25% | 15% |
| spending | $47,250 | $43,923 | $32,696 |
| CAC | $25 | $10 | $7 |
| No. of Sales | 1,890 | 4,392 | 4,671 |
| Event Sponsorship | |||
| proportion of total budget | 10% | 12% | 13% |
| spending | $13,500 | $21,083 | $28,337 |
| CAC | $25 | $30 | $35 |
| No. of Sales | 540 | 703 | 810 |
| Content Marketing | |||
| proportion of total budget | 13% | 15% | 20% |
| spending | $17,550 | $26,354 | $43,595 |
| CAC | $15 | $20 | $25 |
| No. of Sales | 1,170 | 1,318 | 1,744 |
| Social Media | |||
| proportion of total budget | 15% | 15% | 15% |
| spending | $20,250 | $26,354 | $32,696 |
| CAC | $15 | $15 | $15 |
| No. of Sales | 1,350 | 1,757 | 2,180 |
| Google Ads | |||
| proportion of total budget | 5% | 13% | 15% |
| spending | $6,750 | $22,840 | $32,696 |
| CAC | $30 | $35 | $40 |
| No. of Sales | 225 | 653 | 817 |
| Email Marketing | |||
| proportion of total budget | 7% | 10% | 12% |
| spending | $9,450 | $17,569 | $26,157 |
| CAC | $10 | $10 | $10 |
| No. of Sales | 945 | 1,757 | 2,616 |
| Affiliate Marketing | |||
| proportion of total budget | 15% | 10% | 10% |
| spending | $20,250 | $17,569 | $21,797 |
| CAC | $15 | $20 | $25 |
| No. of Sales | 1,350 | 878 | 872 |
| Revenue Assumptions | 2023F | 2024F | 2025F |
| Light Knee Pad for Women | |||
| % of total sales | 100% | 50% | 50% |
| No. of sales | 7,470 | 5,729 | 6,855 |
| unit price | $75 | $75 | $75 |
| Aggressive Knee Pad with Shin Guard for Women | |||
| % of total sales | 0% | 25% | 25% |
| No. of sales | 0 | 2,864 | 3,427 |
| unit price | $65 | $65 | $65 |
| Spine Protector for Women | |||
| % of total sales | 0% | 25% | 25% |
| No. of sales | 0 | 2,864 | 3,427 |
| unit price | $80 | $80 | $80 |
| COGS Assumptions | 2023F | 2024F | 2025F |
| Light Knee Pad for Women | |||
| unit cost | $26.3 | $26.3 | $26.3 |
| Aggressive Knee Pad with Shin Guard for Women | |||
| unit cost | $22.8 | $22.8 | $22.8 |
| Spine Protector for Women | |||
| unit cost | $28 | $28 | $28 |
| Payment processing fees | |||
| as % of revenue | 3% | 3% | 3% |
| Packaging fess | |||
| as % of revenue | 1% | 1% | 1% |
| In- bound shipping cost | |||
| as % of revenue | 1.5% | 1.5% | 1.5% |
| OpEx Assumptions | 2023F | 2024F | 2025F |
| Legal & professional expenses | |||
| as % of revenue | 1% | 1% | 1% |
| Employee travel and relevant expenses | |||
| as % of revenue | 3% | 3% | 3% |
| Miscellaneous | |||
| as % of revenue | 2% | 2% | 2% |
| Spillage & wastage | |||
| as % of revenue | 2% | 2% | 2% |
| Cash Flow Assumptions | 2023F | 2024F | 2025F |
| Payables | |||
| Salaries payables as % of total salaries | 8% | 8% | 8% |
| period in months | 1 | 1 | 1 |
| Receivables | |||
| as % of revenue | 8% | 8% | 8% |
| period in months | 1 | 1 | 1 |
| Inventory | |||
| as % of revenue | 25% | 25% | 25% |
| period in months | 3 | 3 | 3 |
