1. business and industrial

Welcome
Executive summary
The business plan
You want to start a Diamond Logistics Depot. Now it’s time to invest in a little planning to
maximise your chances of success.
This business plan will help your investment, ambitions and dreams into reality. It is part of
learning about how to run your business so take the time to think it through.
Business description
Diamond Logistics was established in 1992 to provide premier dispatch solution to
businesses in Surrey. It now has sites in Surrey, Sussex and Hampshire. Diamond’s
published mission statement is:
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To work in mutual benefit, providing time critical delivery solutions to our clients.
To provide great career opportunities to our staff and subcontractors.
To contributing positively to society on local, regional and global levels.
To be a really good company to trust, work for and to belong to.
I am purchasing a franchise from Diamond logistics
The purchase price is______________________
The area I have purchased is ___________________
The franchise length is 3 years and I have an option to renew for an administration fee subject
to depot performance.
Diamond Logistics Limited Business Plan 2013
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Key personnel
Name the people and the job roles that you will create in your start up. For an outline depot
plan at start up refer to your appendixes.
You will need to give information as to the job roles, the experience of the personnel – and
this includes yourself.
Business name
A Great Logistics Operation Ltd t/a Diamond Logistics (Location)
Name:
Business address and postcode:
Business telephone number:
Business email address:
Home address and postcode (if different from above)
Home telephone number (if different from above)
Home email address (if different from above)
My background
Why I want to run your own business?
Previous work experience
Qualifications and education
Training
Details of future training courses you want to complete
Outline Diamond Training – sample text in italics
Diamonds extensive launch training includes:
Outline other training sources i.e. SAGE etc
Hobbies and interests
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2.6 Additional information
Key Group Contacts
Kate Lester
Daniel Allin
Matt Waple
Managing Director
Operations Director
Group Financial Controller
Further information about the board at Diamond Logistics can be found at
www.diamondlogistics.co.uk
Traditional products and services
Diamond is unique in its product offering providing an inclusive logistics options for UK
business – with the ability to deal with a company’s entire logistics requirement form post to
pallet. All with free online management software.
Its focus on local owner managed and run depots means it sits above its competition in a
commoditised market – with a name and a reputation that is a cut above the rest.
It has been established for over 21 years, has successfully piloted 2 franchises last year and
will roll out a further five in 2013.
Its management team is very focused on successful depot establishment as the return from
Diamond comes from on-going commissions.
Its operational uniqueness means low capital investment and low costs which means depots
can become breakeven very quickly. It also builds an operational foundation on which it is
easy to add ancillary products and services which ass alternative income streams to
businesses, thus increasing stability.
Diamond historically focused on urgent same day premier courier work for the likes of
McLaren Racing, Rolls Royce, The Doctors Laboratory etc, etc. This is high margin worked
covered by outsourcing to quality self-employed subcontractors. Establishing the Multi Carrier
Solutions model in 2011 has enabled Diamond to grow dramatically through out the recession
and extend it geographical reach through the franchise network.
The core product offering is;
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UK and European Same Day
UK Overnight
Internationals
Third Party Distribution
Storage and Distribution
Outsource Logistics
The key element to diamonds success remains the business model. Initially depot builds an
income with Multi Carrier Solutions – an easy to manage overnight collection service. Then
additional income streams with same day courier and actual warehouse incomes streams.
My depot will be relatively small localised sites to man phones and dealing with driver and
client enquiries. Fixed costs are proportionately low. Diamond does not have to provide a
delivery infrastructure in order to have sufficiently low input rates so we can costs effectively
market overnights – Diamond have negotiated direct with the carriers and its group buying
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power means these products can be retailed costs efficiently. This also means the local
depot doesn’t spend half the day providing the delivery infrastructure o tis local hub.
It’s a relatively low capital investment based business model, with minimal requirement for
vehicles and or drivers.
It’s a very marketing led company - client, staff and courier centric business – working
together in mutual benefit which results in extremely high levels of service and client
satisfaction.
Diamonds motto is ‘Shared Success’ – its works hard to make sure its depots are busy,
productive and profitable. No only due to the obligations as a Franchiser, nor the wish to
liberate transport professionals form the mediocrity of running a crappy little courier company
– but to establish a substantial and quality led nationwide logistical network for the roll out of
its national courier contracts in 2014.
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The market
Transport and Distribution is the third largest industry in the UK. Clients range from small
internet start-ups top large blue chip companies with a focus on effective timely deliveries.
Service provision is provided by a variety of means form global brands such as TNT, to UK
based same day operation such as Rico and Citysprint competitors to small local providers
from one man and van, to a medium sized courier company with premises and small fleet.
Future Plans – 2013-2017
Diamond HQ’s Aims:
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To provide excellence in logistics
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To rejuvenate and motivate team to contribute towards a shared and prosperous future
from board to depot and franchise to couriers
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To enable other people to launch and grow their own courier companies.
My depot plans:
 To establish a £1m turnover in my area in 3 years
o £2k accruing month on month new sales
 To create a six figure income for myself in 3 years
The figures: (insert your own forecasts)
2013
2014
2015
Presume growth of franchise at £2k increment per month minimum. The reality is that land a
few biggie sand turnover rockets up – offer in £10k per month increments.
You, by now, should have completed some market research in your area to start looking at
potential clients and your sale pipeline projections. Use these figures to – but £2k per month
is an absolute minimum to expect.
Operational requirements
List here what you need to set up you depot. I have not listed them here as I do not know
what you already have in place – but an indicative list may look like this:
LWB Transit
300 sq. ft. depot
32buit PC
Phone lines etc
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Existing Business sites
Surrey
Unit 9 The Pines Business Park, Broad Street, Guildford GU3 3BH
T: +44 (0) 1483 536888
F: +44 (0) 1483 536887
Sussex
7b Durban Road, South Bersted Industrial Estate, Bognor Regis, West Sussex PO22 9QT
T: +44 (0) 1243 829222
F: +44 (0) 1243 830400
Hampshire
Unit 1BM, Knowle Lane, Deer Park Farm Industrial Estate, Horton Heath, Fair Oak SO50 7DZ
T: 02380 697007
Email: [email protected]
Website: www.reallygoodcouriers.com
Your depot Name
Address
Telephone number
All TBC
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Diamond Logistics Limited Business Plan 2013
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2013
The plan
Stage One
Establish client base with Multi Carrier Solutions
Stage Two
Create additional (higher profit income) with really Good Couriers and Actual Warehouse
solutions
Stage Three
Become part of Diamond Logistics National Same day infrastructure and enjoy additional
income from courier work – from clients such as:
The Doctors Laboratory
Shutl
NHS
The Diamond business model shows best practice, detailing how to maximise profitability,
minimilise mistakes and follow a proven business model, steering people away from costly
capital led models into a flexible and adaptive business. Owner managed and run, yet
backed by supportive HQ, will give me, as a franchisee a strong sense of building a strong
national identity yet retaining the personalised, local flavour which increasingly UK businesses
are buying into.
There are no courier franchises of this type available in the UK.
This is a sales led business opportunity
Diamond will equip people with an administrative back office, an operational format and
carrier accounts and an IT solution for them to establish their courier company or make their
own courier company considerably more profitable.
Key points
 Low cost implementation
 Long term income opportunity
 Participation in national network – enabling my depot to take part in national contract
negotiations in a market that has little competition (currently only 2/3 national coverage
suppliers (i.e. Rico, CitySprint, TNT))
 Sales and operational focus
 Diamond HQ covers the majority of administration, marketing creation and financial
functions
Market/Client Avatar
 Local Business
 SME in top sector markets – manufacturing, legal, marketing, print – spend of £20k per
annum
 Internet Start Ups
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Competition
 List local and national competitors in your area. I would get a mate to phone them up and
get their price lists and marketing literature. Follow a van or two. Do your research.
Training – refer to the comprehensive Training Plan as provided in your initial pack –
this is a sample but you must reveiw and include what elements you think are relevant
to you and your set of circumstances and experience
Sales and marketing – refer to the elements you have committed to as per your training
and manual – this is a small sample but I really want you to think about how you are
going to launch and continue to market your business EVERY DAY.
 Traditional mail out, cold call and appointment led campaign
 PR campaign in local, national and regional press
 Adwords, SEO and Viral campaign
Operations
 Set up by Diamond Franchise Set Up Team – led by their operations Director - DA
 Admin options – centralised
 Geographical targets – Birmingham, Cardiff, Manchester/Liverpool, Newcastle, London x
4 SE initial thereafter UK wide
Income streams
 Three tier initial income streams
 Initial Multi Carrier Solutions sales
 Plus Same day courier revenue
 Plus Actual Warehouse Revenue
 Plus Year II national same day contracts and revenue
Legal
 3 year franchise agreement
 Renewal at reviewed cost
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Section two
Owner’s background
2.1 Why do you want to run your own business?
2.2 Previous work experience
2.3 Qualifications and education
2.4 Training
2.5 Details of future training courses you want to complete
2.5 Hobbies and interests
2.6 Additional information
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Section three
Products and services
3.1 What are you going to sell?
a product
a service
3.2 Describe the basic product/service you are going to sell:
3.3 Describe the different types of product/service you are going to be selling:
3.4 If you are not going to sell all your products/services at the start of your business,
explain why not and when you will start selling them:
3.5 Additional information:
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Section four
The market
4.1 Are your customers:
individuals
businesses
4.2 Describe your typical customer:
4.3 Where are your customers based?
4.4 What prompts your customers to buy your product/service?
4.5 What factors help your customers choose which business to buy from?
4.6 Have you sold products/services to customers already?
yes
no
If you answered “yes”, give details:
4.7 Have you got customers waiting to buy your product/service?
yes
no
If you answered “yes”, give details:
4.8 Additional information:
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Section five
Marketing strategy
What are you going to do?
How much will it cost?
TOTAL COST
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Section six
Market research
6.1 Key findings from desk research:
6.2 Key findings from field research – customer questionnaires:
6.3 Key findings from field research – test trading:
6.4 Additional information:
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Section seven
Competitor analysis
7.1 Table of competitors
Name, location
and business
size
Product/service
Price
Strengths
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Weaknesses
7.2 SWOT analysis
Strengths
Weaknesses
Opportunities
Threats
Unique Selling Point (USP)
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Section eight
Operations and logistics
8.0 Production:
8.1 Delivery:
8.2 Payment:
8.3 Suppliers:
Name and location
Items required
and prices
Payment
arrangements
Reasons for
choosing supplier
8.4 Premises:
8.5 Equipment
If being bought
Item required
Already owned
New or second
hand
Purchased
from
8.6 Transport:
8.7 Legal requirements:
8.8 Insurance requirements:
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Price
8.9 Management and staff:
8.10 Additional information:
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Section nine
Costs and pricing strategy
Product/service name
A
Number of units in calculation
Product/service components
Components cost
B
C
Total product/service cost
D
Cost per unit
E
Profit margin (£)
F
Price per unit
G
Profit margin (%)
H
Mark up (%)
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Section ten
Financial forecasts
10.1 Sales and costs forecast
Month
A
1
2
3
4
5
6
7
Month name
Sales forecast
B
Product/service
C
Product/service
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8
9
10
11
12
TotaL
Costs forecast
D
Product/service
E
Assumptions
(e.g. Seasonal trends)
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10.2 Personal survival budget
Section
A
Monthly cost (£)
Mortgage/rent
Estimated
costs
Council tax
Gas, electricity and oil
Water rates
All personal and property insurances
Clothing
Food and housekeeping
Telephone
Hire charges (TV, DVD etc.)
Subscriptions (clubs, magazines etc.)
Entertainment (meals and drinks)
Car tax, insurance, service and
maintenance
Children’s expenditure and presents
Credit card, loan and other personal
debt repayments
National Insurance
Other
B
Total costs (£)
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C
Estimated
income
Income from family/partner
Part time job
Working tax credit
Child benefits
Other benefits
Other
D
Total income (£)
E
Total survival income required (£)
Back-up plan
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10.3 Cashflow forecast
Month
A
Month name
Money in (£)
B
Working Capital
Funding from
other sources
Own funds
Prestart
1
2
3
4
5
6
7
Sales
Other
C
D
Total Money in (£)
Money out (£)
Premises
Personal
drawings
Vehicle
IT
Marketing
E
F
Total money out
(£)
Balance (£)
Opening balance
Closing balance
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8
9
10
11
12
Total
10.4 Costs table
Cost item
What is included and how you worked it out
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Total cost