Executive Summary
After 30 years of working exclusively in the transportation industry, Charles Sullivan decided to create Sullivan Haulage in 2016. He established a business that provides consumers with effective hauling services in Tampa, Florida, and the surrounding regions.
Sullivan Haulage provides contract transportation and specialized logistics services for companies in a broad range of sectors, including short- or long-haul shipments, curtain vans or flatbed loads, and one-time or regular service contracts. Help is available from us. We consistently give assured satisfaction thanks to a potent mix of cutting-edge technology, specialized knowledge, internal logistics management, and a dedication to safety. By making the most recent equipment investments for our freight services, we are dedicated to meeting the demands of our clients. This comprises vehicles with flatbeds, curtain vans, roll tops, and dry vans that can transport a variety of commodities.
Problem Summary:
Shippers today must overcome various challenges and adapt to a market that is changing quickly. Although supply and demand law still governs the market, issues like the lack of trucks and the growth in transportation costs continue to exist.
Solution Summary:
Sullivan Haulage is positioned to provide top-notch, affordable shipping options for all commodities. Our ability to manage several pick-ups and drops, even for handling atypical freight, results from our fast dispatching, handling, and routing.
Industry Overview:
The American economy depends heavily on the transportation sector. A truck is used to transport almost every commodity Americans eat. Thus, the trucking sector moved 10.93 billion tons of freight in 2021, or 72.2% of all freight carried in the country. The trucking sector had a market value of $875.5 billion in the same year, accounting for 80.8% of the country’s freight expenditure. The primary service operators in the local freight trucking sector are general freight transportation over short distances, often within state boundaries. Various goods that are usually palletized and delivered in containers or van trailers are handled by general freight businesses. Healthy US economic circumstances and the significance of industrial services to the US economy have fueled strong industry demand. Consumer spending increased throughout the five years leading up to 2022 due to rising consumer confidence and declining unemployment. Additionally, increased consumer demand for goods led to more significant manufacturing outputs in the US, generating new industry demand.
Financial Forecast:
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Business Description
Business Name: SULLIVAN HAULAGE
Chief Executive Officer (Owner): CHARLES SULLIVAN
Management Team:
| Name | Designation |
| Jennifer Brain | Finance Manager |
| Timothy Denzon | Operations Manager |
| Alexandra Lennon | Marketing and Sales Manager |
| Michelle Collins | Accountant |
| Erick Jennings | Technical Manager |
Legal Structure: LLC
Location: Our office is located at Tampa, Florida.
Mission:
Our aim is to offer a safe and secure working environment for our customers and staff, and we make every effort to run it properly.
Vision:
We’ll provide the most excellent transportation system in the world—one that’s secure, dependable, effective, considerate of the environment, and enjoyable for both users and operators.
Services:
- Truckload
- Intermodal
- Transloading and cross-docking
- Less-than-truckload
- Flatbed
Financial Overview
Fund Usage
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| 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
As a company, we use a SWOT analysis, an analytical method that combines internal and external elements. We seize all incoming possibilities and lessen their dangers to gain a competitive edge.
| STRENGTH | WEAKNESS |
| Knowledge of management High degree of client satisfaction Effective advertising and visibility to creatively reach the most amount of people possible. | When compared to major worldwide companies on a higher level, Sullivan Haulage is less well recognized. It must concentrate on its marketing to increase brand awareness. Since couriers and delivery personnel represent the company’s public face, it is a concern that they get insufficient training. |
| OPPORTUNITY | THREAT |
| Since logistics are becoming more prevalent, the business may provide more services there. The business can expand its products internationally. | Unfavorable economic and political scenario The firm faces significant danger from the rise in gasoline costs since its operation relies on transportation by road and fuel. |
Founder
Charles Sullivan
Chief Executive Officer (Owner)
Charles Sullivan worked in the transportation industry before starting his own business in 2016, the Sullivan Haulage. Charles has 30 years of combined experience in trucking, dispatching, and brokering. With several devoted carriers and large shippers, he has established ties of trust.
Management Team
Jennifer Brain
Finance Manager
Jennifer Brain also worked in a variety of industries before choosing transportation. She began her career in 2001. Jennifer is in charge of finances, including preparing quarterly reports, weekly payroll, bank deposits, reconciliation of bank statements, posting, filing, and other financial accounts.
Timothy Denzon
Operations Manager
Timothy Denzon started his career as an assistant traffic manager in Phoenix, Arizona. After three years, Timothy changed careers and became an operation manager here at Sullivan Haulage. He was in charge of sending out drivers and allocating trucks to cargo.
Organogram
Industry Analysis
Industry Overview
By 2025, the world’s road haulage market is projected to be worth USD 4,071.7 billion, with an annual growth rate (CAGR) of 5.5% during the forecast period. The growing demand for freight from sectors like industry and retail is being supplemented by a significant increase in the worldwide truck output. Furthermore, distributors favor trucks as the most adaptable, quick-to-act, and cost-effective means of freight transport for transferring a range of commodities, further boosting market development. The logistics sector is also changing due to technological developments, including vehicle-to-vehicle communication, integrated supply chains, remote diagnostics, and autonomous driving. In turn, boosting demand for road haulage services throughout the world.
Rapid package delivery is required due to the booming worldwide online shopping market. The expansion of the e-commerce sector has given rise to new service demands, such as quick delivery and a new class of logistics companies. Soon, there will probably be more demand for road haulage due to the e-commerce sector’s bright future development prospects due to the quick uptake of smartphones and the expanding worldwide internet penetration. Additionally, the expansion of the market has been significantly aided by development in the automotive and transportation industries.
To improve the consumer experience, many e-commerce retail businesses are investing in expanding their logistical networks and capabilities. Additionally, increased industrialization and expenditures in streamlining the package transportation procedure provide additional opportunities for market development. The demand for road haulage is fueled by these investments, the growing population, and changes in residential preferences (location change/shifting) throughout the anticipated period.
However, constraints, including a severe lack of heavy truck drivers and the significant risk of injuries from traffic accidents, are preventing the industry from expanding. Poor road maintenance, a rapidly motorizing society, a lack of safety measures in cars, a rapidly growing population, congested roads, and a lack of police enforcement are just a few of the reasons why accidents on the road happen. Furthermore, it is anticipated that the necessity to comply with strict emission standards and the environmental effect of diesel engine emissions would hinder market development. Nevertheless, emerging autonomous vehicles and innovative logistical techniques provide market sellers new expansion opportunities.
Road Haulage Market Trends
The road haulage industry is primarily driven by domestic and international product and service transportation. The market is also driven by the increasing need for road haulage in the infrastructure, petroleum, military, and industrial industries. The market is anticipated to grow considerably during the projected period due to the rising need for quick, secure, and sufficient ground transportation. The demand has been increasing due to the rise of the transportation and automotive sectors. The worldwide industry is driven by a rising population and shifting residential choices. Significant market barriers for road haulage include transportation strikes, the cost of gasoline, and laws controlling logistics and transportation. Since rail transport is more affordable and quick, it is also expected to constrain the road haulage industry. Also anticipated to grow the industry is globalization. The road haulage industry is expected to grow due to new technology, logistical strategies, and innovative vehicles. It is projected that consistent demand for bulk distribution, agricultural products, essential foods, and package delivery would give the industry significant prospects.
The US freight and logistics sector has been significantly influenced by COVID-19. Based on the same month a year before, when capacity grew by 4.1%, demand was down 1.8% for American carriers in November 2021. Due to industrial closures brought on by COVID-19 in Asia, cargo traffic on the trade waterways between Asia and the United States fell by 2.4% annually.
Over USD 26.1 billion of air freight from the United States left the nation in 2020. Just over 2.1 trillion tons of cargo was moved domestically by rail. By 2045, it is anticipated that the United States will have transported 7.67 trillion ton-miles of freight. While rail freight saw a slowdown because of the fierce competition from trucks in the first half of 2021, the ports in the United States saw rising container volumes. For the US freight and logistics sector, it was a mixed year.
Market Size
Key Market Player:
1. UPS Inc. UPS Inc. was created for the first time in 1907. Supply chain management and shipping and receiving are areas of expertise for this business. American Messenger Company was the initial name of UPS, which is today the world’s biggest courier service with around 500,000 staff members.
2.FedEx Corp. FedEx is an American-based holding company with a focus on e-commerce and transportation. The business was founded in 1971 and currently employs 425,000 people, sending out over 3 billion items yearly.
3. XPO Logistics. This 1989-founded American transportation corporation now has the third-largest market share worldwide. Less-Than-TruckLoad and Truck Brokerage are two services provided by XPO Logistics, which has operations in 18 different nations. 100 000 people work for the firm right now.
Marketing Plan
Marketing Budget
Total budget for projected years:
The following graphs indicate budget allocation across projected years:
Marketing Channel
Website:
People browse online when they need a service or a provider, when they want to learn more, or when they want to compare businesses before making a purchase. To convert these visitors into customers and generate additional leads by maintaining our own website.
Email marketing:
By communicating with customers through email, we can advertise Sullivan Haulage and stay on their minds. Marketing through email outreach provides us with a direct route to increase lead generation with the lower expense and more corporate awareness.
Online Reviews and Referrals:
Referrals from friends and family are a potent marketing tool for a business. Our clientele has grown significantly due to our present customers’ willingness to recommend us to their family, friends, and business associates.
Social Media:
A social media presence enables Sullivan Haulage to interact with prospective customers and staff members, enhance our brand’s exposure, and foster good evaluations. Our business can reach many social media users by maintaining a social media presence.
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 |