Table of Contents
https://bikecargo.be
Phone: +32466901701
email: info@bikecargo.be
Page 1Table of Contents
1.0 Executive Summary
Chart: Highlights
1.1 Objectives
1.2 Mission
2.0 Company Summary
2.1 Company Ownership
2.2 Start-up Summary
Table: Start-up Funding
Chart: Start-up
3.0 Services
4.1 Market Segmentation
Table: Market Analysis Yearly
Chart: Market Analysis (Pie)
4.2 Target Market Segment Strategy
4.3 Service Business Analysis
5.0 Strategy and Implementation Summary
5.1 Competitive Edge
5.2 Sales Strategy
5.2.1 Sales Forecast
Chart: Sales Monthly First Year
Chart: Sales by Year
Table: Sales Forecast Yearly
5.3 Milestones
Table: Milestones
6.0 Management Summary
6.1 Personnel Plan
Table: Personnel Plan Yearly
7.0 Financial Plan
7.1 Important Assumptions
Table: General Assumptions Yearly
7.2 Break-even Analysis First Year
Chart: Break-even Analysis First year
Table: Break-even Analysis
7.3 Projected Profit and Loss Yearly
Chart: Profit Yearly %
Page 2Table of Contents
Chart: Gross Margin Yearly
Chart: Profit Monthly
Table: Profit and Loss Yearly
7.4 Projected Cash Flow Monthly First Year
Chart: Cash
Table: Cash Flow Monthly First Year
Table: Balance Sheet Monthly First Year
Page 31.0 Executive Summary
Bike Cargo is a bicycle [pedal & e-bike] based environment friendly using Artificial
Intelligence courier and city based logistic service in Antwerp, Belgium, catering
to the general public as well as local businesses including e-commerce. The
Bike Cargo transport household goods, parcels as well as daily delivery services
between organic and local operators and their customers, as well as transport
different types of goods as pick and drop for public. General public and local
small business operators will be the primary group of customers and the only
primary targeted, others will be served as well, but will not be targeted.
Bike Cargo service model is subtle different than any operator currently working in
Belgium or anywhere else. Main priorities are to lowering cost of operation, less
or no idle salary, use full potentials from part time biker partners, help them to
get enough orders via our channel, contacts, clients by our application. We can
provide the lowest possible rate to customers. Same time can provide part time
opportunities to many local bike messengers. Bellow image describing the
details of core model.
The Bike Cargo will offer reliability and industry insight to the public and small
businesses, enabling it to provide superior service relative to the current
service providers. As we will use Artificial Intelligence based logistic solution,
dynamic rates which optimize the service and further keep down cost. This will
allow the company to rapidly gain market share. Profitability will be reached byTable of Contents
the second year, and revenue for year three will be very comfortable. After that
we will cater in different cities and in logistic from Antwerp port.
Also I have a plan to manufacture the same high quality cargo bike from my
associated manufacturing unit in India in the near future. As currently available
cargo bikes from European manufacturers are very costly and from other
market [eg. China] similar bikes are not good quality and also with rod for steer
not coaxial cable.
Chart: Highlights
1.1 Objectives
The objectives for the first three years of operation include:
● To create an AI based service company whose primary goal is to exceed
customer’s expectations.
● The utilization of The Bike Cargo by at least 50 different local businesses
including e-commerce and at least 1000 loyal general customer.
● To increase the number of clients served by 20% per year through superior
service.
● To develop a profitable start-up business within the first year of operation.
Page 5Table of Contents
1.2 Mission
Bike Cargo’s mission is to provide local businesses and public with an
environmentally friendly, expedient logistic delivery service. We exist to attract
and maintain customers. When we adhere to this maxim, everything else will
fall into place. Our services will exceed the expectations of our customers.
2.0 Company Summary
The Bike Cargo is an AI based bicycle courier service that start serves the
downtown local businesses and general customer in Antwerp, Belgium. The
company offers a different type of goods delivery service for local businesses
and general customers; goods can be delivered to other types of customers, or
else within the city. The company will also offer a scheduled pick up as well as a
spontaneous run. Within six months the business will be profitable.
2.1 Company Ownership
The company will be a cooperative social business, primarily owned by Dhiraj
Patra and other partners.
2.2 Start-up Summary
Bike Cargo will incur the following start-up costs:
● Coworking office spaces including: two desks, two chairs, and two file
cabinets.
● Two cargo bicycle eg. Douze which can carry upto 100 kg of load each.
● Two cargo bicycle which can carry upto 50 kg of load each.
● Two computer systems including a printer, and a broadband Internet
connection.
● Two phone lines with multiple channels. Also virtual no with PBX.
● Development of a website and fleet management software including AI app
that allows delivery orders to be placed online and received every minute.
● Legal fees for the incorporation of the business.
● Marketing including social and other organic marketing.
● Mobile phones to be used for communication between bike messengers
mobile units and the base. Virtual no, Proximus, Orange or Lyca is used
because it offers a two-way communication function, similar to a two-way
radio, over cellular frequencies, but at a significantly reduced rate compared
to standard cellular service. Four handsets will be needed initially.
● All weather messenger bags with company logo.
● Salary and other fees for messengers and office assistant.
Page 6Table of Contents
Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund €7,000
Start-up Assets to Fund €18,000
Total Funding Required €25,000
Assets
Non-cash Assets from Start-up €6,000
Cash Requirements from Start-up €12,000
Additional Cash Raised $0
Cash Balance on Starting Date €12,000
Total Assets €18,000
Liabilities and Capital
Liabilities
Current Borrowing €0
Long-term Liabilities €0
Accounts Payable (Outstanding Bills) €0
Other Current Liabilities (interest-free) €0
Total Liabilities €0
Capital
Planned Investment
Dhiraj €25,000
Other [crowd funding from local] €10,000
Additional Investment Requirement €30,000
Page 7Table of Contents
Total Planned Investment €65,000
Profit at Start-up €0
Total Capital €65,000
Total Capital and Liabilities €65,000
Total Funding €65,000
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal €2,500
Stationery etc. €100
Marketing €450
Software Consultants €2,000
Insurance €500
Rent €700
Research and development $0
Expensed equipment €500
Other €250
Total Start-up Expenses €7,000
Start-up Assets
Cash Required
€12,000
Page 8Table of Contents
Other Current Assets €0
Long-term Assets €6,000
Total Assets €18,000
Total Requirements €25,000
Chart: Start-up
3.0 Services
Bike Cargo will provide a bicycle messenger service that targets local business
operator and public. The service can be used to service of removal and deposit
of parcels in a given perimeter. Merchant shopping service of downtown
merchants, network of merchants members.
The customer has the choice to leave his shopping or to order and to be delivered
at home, in the office or in one of the points of deposits identified.
Page 9Table of Contents
Food delivery service intended mainly for companies in the reception area as well
as a delivery service for sandwiches, soups and other dishes at lunch time.
The courier offers a selection of selected products that are difficult to obtain in
traditional distribution channels; in a logic of promotion of the short and
equitable circuits.
The principal products proposed are: cake pastries, fast foods, brewery and
fair-trade drinks, baskets vegetables: market gardeners bios. This service is
ancillary to the business of transporting goods.
The vehicles used allow, however, to offer a display advertising on the bike and is
also as a means of communication and promotion during an event or for the
distribution of samples, gifts etc.
4.0 Market Analysis Summary
The Bike Cargo will primarily be serving Antwerp based local business including
e-commerce and the general public. Later we can move to different cities in
Belgium as well as Antwerp port logistics. This is particularly attractive segment
because local merchants have a constant need for delivery of their goods to
their customers. Most businesses are sending things consistently during the
day. The Bike Cargo will be able to set up contracts with firms to provide
multiple scheduled pick-ups each day.
Years of experiences in European businesses especially AI based logistic and
transportation sectors, Dhiraj will be able to leverage his vast industry knowledge
as well as his network of known local and international experts in this field to gain
market share. Besides this AI based application will reduce fraud and optimize
customer’s experiences and increase profit as well. Intention to join local e-bike
manufacturing industry as well step by step.
4.1 Market Segmentation
The concept of bike couriers is not new, illustrated by an advertisement by the
Cycle. Trades of America delivery work dating from the 1920’s. In contrast to
the current situation, the focus was on speed; sustainability was less an issue
at that time. This is possibly the oldest bike based logistics system in the world.
Since 1890 Mumbai (India) knows an efficient system to distribute food. Every
day, more than 175,000 lunch boxes are transported by 4,500 to 5,000
‘Dabbawalas’, the couriers. In 2002 Forbes magazine wrote that the reliability
of the services is that high that it complies with the six-sigma norm.
Current CEP volumes are determined via proxy methodologies. The market will
probably grow because E-commerce is growing strongly. Sales are rising, the
demand for parcel services in urban areas. The package volumes in Belgium
grew between 2013 and 2015 24.3%. 79% of Belgian e-shoppers prefer having
Page 10Table of Contents
the goods delivered at home. In 2015 ordered an average Belgian 12.4
packages per year, which was only 8.1 in 2010. Op based on this data and the
number of Belgian residents in 2016, the annual number will come packages for
a city such as Antwerp at almost 6.72 million stop on an annual basis. And for
Brussels, the approach is 15.44 million packages a year. E-commerce is still
growing fast.
Bike Cargo will service two distinct groups. The first group is the main group of
customers: wide variety of local businesses. This will be the group that is
targeted primarily. Local businesses are constantly in need of their goods
delivery, whether it is to clients, or other small shops, or to the customer. This
regularity of needed delivery is the reason that local merchants are targeted.
Once a local business has become a satisfied customer, it is likely that they will
begin to increase their delivery needs. This then becomes a steady, high
frequency, long-term customer. Local merchants constant delivery activity,
many businesses require pick-ups goods throughout the day and require
dependability, which is one of The Bike Cargo’s competitive advantages.
The second customer group is assorted deliveries needed in the city. This could
come from a wide variety of general public that require transport their
household goods or else within the city.
Table: Market Analysis Yearly
Market Analysis
Year 1
Year 2
Year 3
Year 4
Year 5
Potential Customers Growth
Local businesses
65%
CAGR
€25,000 €41,250 €68,063 €112,303 €185,300 0.65
Assorted customers 55% €5,000 €7,750 €18,619 0.55
Total €30,000 €49,000 €80,075
60.%
€12,013
€28,860
€130,923 €214,160
0.60
Page 11Table of Contents
Chart: Market Analysis (Pie)
4.2 Target Market Segment Strategy
The Bike Cargo will target its market through channels that all local businesses
typically see. The first is the http://www.investinbrussels.com,
https://www.flandersinvestmentandtrade.com and other regional and central
Belgium Govt organisation ready to help for environment friendly investment
and local employment creation activities like Bike Cargo. Aggressive social
networking advertisements will be placed in the different similar minded group
and people in the region to increase the visibility of Bike Cargo. Additionally,
there will be local advertisements and brochures passed out to local shops,
stations, bus stops and other public areas.
This market will also be targeted through a networking scheme based on Dhiraj’s
contacts that he made while he was in Belgium on site work and later. Although
Dhiraj don’t live right now in Belgium but preparing to relocate with
Professional Card for this business setup and live here. Dhiraj will leverage his
network to create initial clients. This will not be difficult because a trust bond
has already been formed with many different people in the city. Besides this
innovative business plan along with profit sharing cooperative model create
perfect bond with local. By local contacts reach small shops and home
restaurants as well to start to get order.
4.3 Service Business Analysis
There are approximately two different bike cargo delivery services in the Antwerp
area, half of them services that also makes deliveries. The rest are courier or
messenger services. Some use cars and a few use bicycles as a means of
transportation. They neither have sophisticated AI based analytics software to
Page 12Table of Contents
predict and dynamic rate management system neither they enabled latest
urban logistic system. In general, the bicycle messengers are less expensive
because they have lower overhead. In the heart of downtown, the bicycle
messengers can be as fast or faster than the car-based courier services
because of all the automobile traffic besides non polluting transport is
sustainable for future mode of transport in side city.
There is one company that serving as bike cargo delivery. The buying habits of
small local businesses are based on price, convenience, and reliability.
5.0 Strategy and Implementation Summary
The Bike Cargo’s strategy for gaining market share will be based on it’s
competitive advantages: reliability, industry knowledge and high technological
approaches to customers. Reliability is very important to local businesses and
will make The Bike Cargo very attractive. Additionally, Dhiraj’s industry and
technological knowledge will be helpful in convincing local business and general
customer to try this company because it understands and caters to city based
environment friendly logistic needs much better. Futuristic approaches will
definitely gain customer’s confident slow but steady.
Bike Cargo will use partner bikers and some part their own bike as well for the
delivery. So that temporary bike messengers will work in need. Also delivery
based or hourly based private bike messenger will be available to delivery. So it
will keep down cost as well local employment will increase rapidly. Besides
BikeCargo’s profit it will help to lower cost delivery for customers as well.
Antwerp has been chosen as the headquarters for this service because it is an
environmentally-friendly, port city. The citizens are interested in environmental
health, and are welcoming to new businesses with the same doctrine. The Bike
Cargo is proud to be a messenger service on bikes, it is proud to help keep the
environment safe and healthy in Flander’s cities. Besides these Dhiraj have
lived in Antwerp for some months also been to Ghent, Bruges and other cities,
know very well.
5.1 Competitive Edge
The Bike Cargo has two competitive edges: reliability and industry insight.
Reliability is a characteristic that is very important to local businesses and
public. Those businesses and local people require reliability of delivery. Often
the delivery of personal goods and documents is critical. Local business always
choose the reliable partner for logistics in and out at time and careful,
responsible cargo delivery company like Bike Cargo. The Bike Cargo achieves
reliability through a redundant back-up system that always provides an
alternative method of delivery if the specific bicycle messenger encounters
difficulty. Also full path can be tracked in APP. AI based predictive application
also help to make a commitment to their customers with confidence. By having
Page 13Table of Contents
a back-up system, the company ensures that even if the primary messenger
fails, there is a back-up ready to complete the delivery.
The second competitive advantage is logistic industry insight and years of
expertise. Dhiraj is not a amaeture he has more than 20 years professional
expertise with high technologies and different businesses. Besides this he has a
degree in Commerce and Finance so he can handle the business administration
and accounts much like a professional accountant. It is a true advantage for
Dhiraj to have love with bicycle and Antwerp for long. This work gave him
industry insight that is not replicable without actually doing the work. The
insight is valuable because Dhiraj knows intimately what local businesses need
in regards to logistic solution in city to delivery in time. While other companies
will gain some insight by serving the local market for 2–5 years, it will not
compare in breadth to Dhiraj’s professionalism and knowledge of business
logistics.
5.2 Sales Strategy
Bike Cargo recognizes that it is difficult to break into many local businesses and
displace their current service provider and will offer a 20% discount for a
months worth of services. Besides it they will first time working with AI based
logistic solutions partner which serve with same trusted bike cargo but with
highly sophisticated way and professionalism. While this is a bit of a hit in
terms of profitability, it is only a short-term concern. The long-term gain is
securing a repeat customer.
In addition to this economic incentive, The Bike Cargo will employ Dhiraj’s powers
of persuasion when he is speaking with prospective customers and businesses.
He will directly target the company’s reliability and fool-proof back-up systems,
as well as impress his recognition of the needs of his clients based on his own
years of practicing law. He will use these two features to attract new clientele.
5.2.1 Sales Forecast
The first month will be used to set up the office and hire and train messengers.
The second month will begin to see some sales activity. Sales will ramp up from
month three on. There will be an incremental increase each month as more and
more firms become aware of the services of the company.
Page 14Table of Contents
Chart: Sales Monthly First Year
Chart: Sales by Year
Page 15Table of Contents
Table: Sales Forecast Yearly
Sales Forecast
Year 1 Year 2 Year 3 Year 4
€25,000 €41,250 €68,063 €112,303
€5,000 €7,500 €11,250 €11,250
€30,000 €48,750 €79,313 €123,553
Sales
Local Businesses
Assorted customers
Total Sales
5.3 Milestones
The Bike Cargo will have several milestones early on:
1. Business plan completion. This will be done as a roadmap for the
organization. While we do not need a business plan to raise capital, it will be
an indispensable tool for the ongoing performance and improvement of the
company.
2. Completion of whole AI based fleet management application including APP
3. Set up office.
4. Hire and train staff.
5. Start crowdfunding process.
…….. more details especially accounts tables not shown here.
To get a full Business Plan along with Accounts, contact me.
I can prepare a full business plan along with while Accounts plans for your startup. Thanks
No comments:
Post a Comment