Running head: BUSINESS PLAN FOR COURIER SERVICES 1

Business Plan for Courier services

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BUSINESS PLAN FOR COURIER SERVICES 2

1.0 EXECUTIVE SUMMARY

1.1 Introduction
There is a pressing need for courier services in the country. With a significant increase in
the use of mail a courier service company is remarkably essential. The joint owners A and B
have got an exemplary experience in the courier service delivery services as they come from
business oriented backgrounds where their families and families have been users of the existing
courier and parcel delivery services. They two hope to incessantly come up with an excellent
working postal business with performance objectives to increase service delivery in enhancing
communication through the courier platform.
This will be a successful venture since we will be offering something different, that is,
pleasant customer experience. We aim at creating an efficient courier services network that can
be accessed by end consumers. We will be a selling professional service also an experience in
the entire care buying that will definitely bring any customer back again in addition to referring
their cronies also family. We are estimating an optimistic gross margin that is above the industry
average. Success will follow our way due to the excellent team that we have brought together,
the drive as well as the owners determination.

1.2 Business opportunity

The availability of customers that desire to use mailing services, including sending
parcels, delivery of cards, delivery of equipment, offers an opportunity to exploit the markets
potential.

1.3 Product/ Service Description

1.3.1 Product
Roberms Holding Ltd deals in courier services at a relatively competitive price. The
company offers postal services and also expertise customer services regarding delivery of highly
confiscated products through their company. With a well-established network and efficient
working fraternity that is flexible, we offer diverse services for our diverse customers.
The companys various stations work on a daily basis to ensure that the customers
demands are met. With its efficient communication and transport equipment, the parcels and
letters scheduled for delivery will always be delivered in accordance with the customers
expectation.

1.3.2 Product Description

The services the company will deliver to its customers and the community will be in
accordance with the accepted standards. A clear outline of the companys by-laws help uphold
the ethical conduct of our employees in service delivery. The equipment to be used by the
company will be purchased from trusted dealers to ensure service delivery is efficient. Our
courier services are affordable and can be accessed by people from various social classes. In
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regards to our primary objective, our company focuses on providing quality services to people
from various social status in the country.
Our stations will be located strategically to help our clients access their products easily.
We will cater for every customer at a personal level through a personal interaction for service
evaluation and customer satisfaction. To avoid incompetency, we have adopted a mechanism to
enable our clients select from a wide description of the services they need.

1.4 Current Business Position

As a start-up, the company has done market research and analysis, and has projected the
possibility of attracting a large portion of customers to use the services the company offers.

1.5 Financial Potential

The research done about the prospected market on which the business will thrive has shown the
possibility of attracting many customers to the company courier services which consequently
attracts revenue inflow of millions.
In terms of the financial projection we have got the following
i. The growth is going to be moderate up to good, and the cash flows.
ii. The marketing is bound to remain below 10 percent of the sales

1.6. The Request

2.0 COMPANY BACKGROUND

2.1 Introduction
The Company is a business engaged in sending and delivery of parcels, letters and
equipment from the sender to the receiver. The companys services will include packaging,
accepting letters and parcels and providing express services and security to mails. The company
also offers ordinary mail services and helps track mails.
2.2 Business Description
The Company will be an independently-owned business which will start its operation
from the year 2016 and has been established by two partners with a rich background in mail
services. We will be offering all types of mail services to our clients. Moreover, our flexibility
also allows us our customers to apply for customized services to suit their demands. The
business will be conveniently situated in three counties at the start. Because the company will be
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a privately owned enterprise it will be registered as a Subchapter S, within ownership ratio of

50%- A, 50% -B.
The start-up capital for Roberms Company is primarily will be channeled towards the
purchase of the necessary equipment for the Business. Each partner has contributed equal ksh
8,000,000 towards the ksh 16, 000,000 capital. Both partners will also be actively engaged in the
operations and the management of the business of the company. If necessary, the partners have
agreed that they can secure a long-term loan, to support the operations of the company.
Almost 90% of the entire start-up costs will be directed into assets. These costs will be
financed by combining the owners investments, writing proposals for short-term loans from the
VA business loan plus other long term borrowing.
There are other miscellaneous expenses in the form of:
Legal fees, to be paid for the establishment of the business (both in terms of ownership
plus no sell agreements).
Buying of stationary plus other office supplies
Marketing and other promotional fees
Initial consultation for the establishment of records with accountants
Renting for lot plus offices
Expensed equipment such as computers, desks, copier machines, phone lines in addition
to other furniture
A month initial startup investment for the vehicles

2.3 Current Position and Business Objectives

The business objectives of the Roberms Company Ltd include the following:
Realizing high revenues from providing courier services to clients during its first year in
business in Kenya.
Reach a customer base of at least 100,000 who use the company in the first year
Increase the companys outreach level by 5 percent for every quarter of a year, during the
second year of operation.
100% rate of customer satisfaction. This will be measured by means of customers coming
back, referrals as well as surveys
Achieving and surpassing the industrys mean profit margins over the first 2-yaers of
business establishment
Achieving respectable net profits by the second year.
2.4 Mission
The mission of the Roberms Company Ltd is to become the courier service provider of
choice for the people of Kenya.
The company will be providing unique mail services that create long lasting experiences
to all the clients in market. The company focuses on increasing its service delivery to enhance
customer satisfaction. The companys goal is giving customers with enjoyable, quality services
through the satisfaction of individual clients practical transportation requirements.
It is also within our conviction that we ought to offer courier services that can be
accessed by anybody from any social status. Job satisfaction is generally significant for the
employees, therefore, company will create a suitable working environment for its employees.

2.5 Ownership
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The Roberms Company ltd will operate as a limited liability company owned by two
owners (A & B) of Kenyan origin who have entered into a partnership business.
The operations of the company will be run from the headquarters based in Kisii, Kenya.
The companys headquarters is strategically located, and will be used as a transportation hub.
The facility will be critical to the collection and dispatch of the letters and parcels to their various
destinations. The location of the companys operational grounds will help to keep costs low, and
also foster the accessibility of the target market.

3.0 TECHNICAL INFORMATION

3.1 Introduction
The company will be engaged in mailing services. The company focuses on providing
both ordinary and express mail services. Moreover, the company also offers packaging services,
the company seeks to exploit the opportunity.
3.1 Product overview
The products involved will be courier products and services. The company is solemnly
dealing with mailing services.
Roberms Company Ltd deals in both express and ordinary courier services. The
company also customize its operations to suit the clients expectations in the delivery of their
parcels and letters.
3.2 Competitive Analysis
The courier service market is estimated to be around KSH 2.5 billion, and is realizing
growth levels of more than 15 percent every year. The forces underlying the growth for the
demand of courier services is due to the increased demand for communication. In particular,
people sometimes prefer sending parcels containing important document using courier services
because there is swift delivery and security.
Typically, the customers are interested in the security the companies offer, most courier
services companies have not incorporated the security measures that constitute the preferences of
the customers. Although most companies offer express and ordinary mail services, Roberms
Company Ltd seeks to improve on the delivery and transportation mechnisms.
3.3 Suppliers and inventory
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Most of the inventories will be sourced from various companies that deal with office
inventories. Moreover, because the company requires trucks and vans, vehicles will be supplied
from trusted and reputable vehicle dealers.
3.4 Research and Development
The company will dedicate a research and development arm that will explore the business
areas where it can expand, particularly the specialized products that it can enter. In particular,
one area that it will explore for future includes that of potential market gaps that require courier
services.

4.0 SERVICE
Looking at the nature of the business and the industry at large, there will be numerous courier
services that will be involved.

5.0 THE INDUSTRY, COMPETITION AND MARKET

5.1 Targeted Users
The company hopes to attract 50,000 company users in its first year of operation in the
three counties which include Nairobi, Nyamira and Kisii. This objective is achievable through
enhancing customer satisfaction which constitutes the primary objective of the company. In its
second year of operation, the company seeks to attract 50,000 users in its new area of operation.
The company hopes to extend its operations to Kisumu and Kericho counties. In the third year of
being fully operational, the company wants to have a customer base nationally of 1 million users.
5.2 Industry Definition
The companys main services are courier services. The company offers express mailing
services where customers letters and parcels are delivered swiftly. The company also offers
ordinary mail services. The industry in Kenya has significantly grown because Kenyans use for
courier services has been growing at an unprecedented level, considering that every Kenyan from
every social class needs to send a letter or an important parcel.
5.3 Primary Competitors
Currently, the courier service market has a number of competitors. The main companies
that offer courier services in Kenya include G4S, Wells Fargo, East Africa air mail, Aramex
Kenya Ltd, Fedex Express Ltd, Urban Cargo Networks Ltd and Skynet Worldwide express.
Considering that competition existing in the market may be relatively high, the main
strategy of the company is to focus on customer satisfaction through offering unique services.
The Company will effectively blend in the competitive market by adjusting its objectives and
adopting new strategies to compete effectively.
5.4 Market Size
As per the existing market information, the demand for mail services is high. The Kenyan
population that uses the mailing services is on a steady increase. With the population increase in
this various areas, the demand for communication between people in different places will also
increase. The market is estimated to have 2million users of postal services. The postal services
especially in areas of establishment are essential. .
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5.5 Market Growth

By incorporating market segment, the company would be able to identify the needs of the
customer. Allowing the company to segment its operations, the clients can access specific
services increasing the competitiveness of the company. The company may offer express mailing
services to a specific segment of the companys clients. Moreover, the company can also offer
packaging services to its clients to increase its competitiveness.

5.6 Customer Profile

The ideal customers of the courier service Company are grouped under various customer
groups, and they include the following. However, it is necessary to note that the customer groups
will be increased in the future, depending on the market research done in the Kenyan market.
1. The corporate companies that use mail services to reach their clients.
2. The individuals who use the postal services for their own personal intentions.
3. The educational and medical institutions that want to reach their esteemed customers.

Roberms Company Ltd is highly targeting both corporate and individual customers as
their primary target population. Further, the focus is more on individual customers than corporate
customers.

6.0 MARKETING PLAN

6.1 Introduction
The market for courier services is increasing at a rate that is higher than the increase in
the citys population. In Kenya, communication also depends on the postal and courier services
offered by the various companies.
6.2 Competitive Advantage
Roberms Company Ltd will offer the corporate, business and individual customers in
Kenya, outstanding courier services at a relatively competitive price. The companys diverse
mailing services are in accordance with the customers demand. The company offers both express
and ordinary services according to the clients preferences.
The company is primarily focused on diversing its services and customizing its services
to help cope up with the competition in the industry. The services the company are affordable,
therefore, the company aims at reaching a large customer base because of the accessibility of its
services.
6.3 Pricing
The pricing strategy adopted by the Roberms Company Ltd is based on standard rates of
postage prices which will include the cost of sending parcels. The rates are based on various
categories based on the weights of the parcels. The prices vary with the weight of the parcels and
letters. This pricing mechanism is used for billing for any customer willing to send their letters
and parcels.
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6.4 Distribution Channels

The company will use trucks and vans to deliver the letters and parcels swiftly to their
destinations. The company focuses on promoting its services and making them available to
Kenyans. The company objective of targeting corporate and business companies helps diverse
the services the company offers. Further, the strategy of targeting these customer segments may
be very effective, considering that they have been traditionally ignored by the courier service
provider companies operating in Kenya

6.5 Promotional Plan

During the months of May and June, the sales people hired to work in the region will
offer presentations at companies and individual. The company will offer interested customers a
10 percent discounts on mail services, particularly new and consistent customers, so as to
develop customer loyalty. The key aspect of the strategy is engaging in continuous follow-up on
customers, so as to deliver the cars of their choice and preferences, at the time of need.
6.6 Feedback
Roberms Company Ltd will rely on its customers for feedback. The feedback platform
enables the customers review the quality of services the company has offered. This business
strategy helps to improve the business. The customers will provide the feedback needed to
improve the service standards and the satisfaction of customers.

7.0 OPERATING PLAN

7.1 Introduction
The operating plan of the company will focus its operations in Kenya. The company
hopes to be a national company extending its operations nationally across all counties by the
third year of being operational.

7.2 Location
The companys headquarters will be located in Nyamira County. At the start-up, the
company will carry its operations in three counties. These counties include Kisii, Nyamira and
Nairobi in the second year of its operation, the company will extend its services and location to
Kisumu and Kericho counties and nationally in the third year of its operations.
7.3 Facility
The main facility of the company will be the main operational area. It will be located in
Nyamira County and every county under the companys operation will also have an on-site
office, where communication with the companys headquarters and customers will be done. The
main areas of expenditure are shown in the start-up requirements table tiled figure 4. The funding
model for the company is also shown in figure 5.
Figure 4: Start-up requirements
Expense Area Amount (KSH)
Legal 100,000
Stationery and related purchases 5,000,000
Rent 50,000
Insurance 20,000
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Equipment 6,000,000
Total start-up expenses 11,170,000

Assets of the company Amount (KSH)

Required cash 500,000
Inventory 2,000,000
Long-term assets $0

Total requirements 2,500,000

Figure 5: Funding for the start-up

Item Value
Contribution by partner A 8,000,000
Contribution by partner B 8,000,000

7.4 Operating Equipment

Due to the nature of the business, the major equipment investments will be
channeled to the headquarters offices in Nyamira. The on-site offices in other counties might be
rented offices or contrast the suppliers of required services.
7.5 Personnel Plan
Partner A and B Oversight of managerial and marketing aspects of the business
Sales and marketing representatives (5)
Facility staffs (5)
Personnel plan
Personnel plan
Year 1 Year 2 Year 3
Partner A & B 500,000 600,000 600,000
Sales and marketing representatives 250,000 300,000 300,000
(5)
Facility staffs (5) 150,000 200,000 200,000
Total People 12 12 12
Total Pay roll 900,000 1,100,000 1,100,000
7.6 General Operations
The personnel of the company have been allocated their roles, and further changes may
be made, or their areas of operation changed, depending on the perceived needs in the
operational centers.

8.0 MANAGEMENT, ORGANIZATION, AND OWNERSHIP

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8.1 Introduction
The company will be managed by the two managers that are also partners in business. As
a startup, the business model does not need to hire fulltime professional consultants, and will not
have a board of directors.

8.2 Management/ Principals

Partner A and B, who are the owners of the company will manage the business. The two
have lived in Kenya all their entire life. They are business experts who have been involved in
businesses regularly. They worked as salespersons and assumed managerial positions in various
companies. With an outstanding experience, the success of the business is undoubtable.

8.3 Organizational Structure

The partners in the business and the employees will work like a team, where the two
partners will lead employees in their respective area of work. Partner A will the team leader
leading two sales and marketing staffs, and one facility staff. Similarly, Partner B will be the
team leader in charge of marketing staffs and one facility staff. Partners A and B will be
responsible for the oversight of managerial, marketing, and other functions of the business.
8.4 Professional Consultants
Due the operations of the company, it will hire full-time professional workers. The
company will hire staff with qualifications in business administration.

8.5 Ownership and Boards

The small operations of the business do not require the engagement of a board of
governors, and therefore none will be constituted, during the first three years of operation.

9.0 GOALS AND STRATEGIES

9.1 Introduction
The company aims to secure a considerable share of the courier service industry.
9.2 Business Goals
The goals of the company for the first year in operation include the following:
Achieve a customer base of 50,000 that use the services it offers in three counties.
Become a reputable courier service company with flexibility and a preference for
corporate clients and companies.
9.3 Keys to Success
The keys adopted for the success the business model include leveraging the connections
of the customers that will be attracted, so as to reach more customers through them. In essence,
the company will use its networks to expand its market share and the number of customers it
serves countrywide. So as to succeed in this venture, we ought to:
Bring together a team consisting of experienced professional.
Ensure the best strategic orientation especially placing the business in an high traffic
flow area
Establishing a network of suppliers so as to purchase yet sell the various products which
are the highest I terms of reliability also quality. This will be at a competitive price.
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Increase the loyalty amongst our clients through an increase in satisfactory rate using
values of honesty plus integrity.
Creating high kind of morale through rewarding the employees hard work or success
using moderate compensation.
9.4 Future Plans
The future plans of Roberms Company Ltd include expanding the market nationally,
however, the current will first establish itself in offering its services in the three counties.
The future services will involve the modern technology to cope up with the technological
advancements.
10.0 FINANCIAL ASSUMPTIONS
10.1 Introduction
The growth level for the company is expected to be between moderate and good, and the
ash flow of the company is expected to remain steady, during the first five months of operation.
This growth shall be moderate in nature going up to good. The will be steady cash flows over the
next several months while we expect that the market is going to remain below 10% of the total
sales. The enterprise will be making investments in residual profits, roughly 10% into the
financial markets and about 51% into efforts geared into expanding the business for the
beginning first year.

10.2 Assumptions
The management of the company has made the assumption that market conditions will
remain stable for the next three years, and it is expected that sales levels will grow steadily. We
will be accepting credit cards as well as all forms of payment methods regardless of their value
involved. However, some payment methods shall have some negative impact on the cash flows
in the sense that it may not be possible for us to be paid within the next several days. Thus, it is
within our plans to limit the payment methods on various transactions. Our personnel roles will
be very low based on the fact that just a few benefits will remain unpaid to the part timers.
Looking at the current rates in the market, we assume that the short term interest rates are
bound to be very low.
Another assumption that we have formulated is that the conservative earnings from the sale of
loans as well as extended warranty will be actuated.
Next, we have made an assumption that the current conditions in the courier business market are
going to remain for the next couple of years. Therefore, low rates shall have positive influences
on the business.

10.3 Projected Sales levels

Year 1 Year 2 Year 3
Projected Sales (Ksh)
Sales 3,000,000 4,000,000 4,500,000
The financial assumptions displayed in this plan were developed based on the estimation
of the market share that the company expects to get. The market share average was computed
through evaluating the Kenyan market potential.
10.4 Cash Flow Analysis
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We are orienting ourselves into the Kenyan market just as medium risk concern that will
de denoted by steady forms of cash flows. We think that the initial cash flows especially in July
are going to be negative. This will be followed by steady increasing of cash in the following
months all the way to October when there will again be a negative cash flow. After October,
there will be an increase in the cash flows the next few months until May where we expect a
slow loss. For the second year into the business, we there will be a general solid increase. From
all the earnings, the cash flow slight above 50 % or 50% will be put back into the business in
form of various re-investments. 10% of this will be put back into Roberms Company Ltd long
term assets whereas we will reserve about 5% for promotional and reward to the customers.

10.4 Market Segmentation

Roberms Company Ltd will target the following customer groups:
o The taxi and car rental car companies that purchase cases in large numbers.
o The companies that purchase cars for their staffs or for staff transportation use
o The individual customers that purchase one or a few cars for their use or for use in their
businesses
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