Logistics Business Plan
You’ve come to the right place to create your Logistics business plan.
We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Logistics businesses.
Below is a template to help you create each section of your Logistics business plan.
Executive Summary
Business Overview
Rose City Logistics is a new logistics company located in Portland, Oregon. Our mission is to help local businesses in the Portland area thrive by providing them with convenient and affordable logistics services. We provide a suite of supply chain services to these clients, including warehousing, inventory management, order fulfillment, and shipping.
Rose City Logistics is run by Thaddeus Gladwell. Thaddeus has been a warehouse manager for several years, giving him the experience and knowledge needed to run a logistics business. His experience, expertise, and connections in the industry will be our most valuable assets.
Product Offering
Rose City Logistics will provide logistics and supply chain services to local businesses. These services include inventory management, order fulfillment, and shipping and delivery. We manage our clients’ entire inventories and fulfillment processes so they can focus on more important aspects of their business.
Customer Focus
We will primarily serve small and medium-sized businesses located in the Portland, Oregon area. We expect most businesses will be retail establishments, e-commerce businesses, and businesses in the food and beverage industry.
Management Team
Rose City Logistics is headed by Thaddeus Gladwell, who has worked in the logistics industry for decades. For several years, he has operated a logistics warehouse as a warehouse manager, giving him the experience needed to run a similar company. Furthermore, his extensive career has gained him many connections in the industry. His experience and connections make him the most valuable asset to our company.
Success Factors
Rose City Logistics will be able to achieve success by offering the following competitive advantages:
- A strong commitment to small and local businesses.
- Speedy shipping and transportation services.
- Accurate and thorough inventory services.
- Customized service that allows for small businesses to have their requirements accommodated.
- Proactive, helpful, and highly qualified team of warehouse staff and drivers.
Download the Logistics business plan template (including a customizable financial model) to your computer here <–
Financial Highlights
Rose City Logistics is currently seeking $1,400,000 to launch. The capital will be used for funding capital expenditures, salaries, marketing expenses, and working capital. Specifically, these funds will be used as follows:
- Warehouse design/build: $500,000
- Vehicle purchase and maintenance: $200,000
- Equipment, fixtures, and supplies: $300,000
- Six months of overhead expenses (payroll, rent, utilities): $200,000
- Marketing costs: $100,000
- Working capital: $100,000
The following graph outlines the pro forma financial projections for Rose City Logistics:
Company Overview
Who is Rose City Logistics?
Rose City Logistics is a new logistics company located in Portland, Oregon. Portland is home to many family owned and local businesses. However, we know that many of these businesses don’t have the space or means to keep a large inventory. Rose City Logistics was founded with local businesses in mind. Our mission is to help small businesses thrive by providing them with logistics services they need in order to grow their operations.
Rose City Logistics is run by Thaddeus Gladwell. Thaddeus has been a warehouse manager for several years, giving him the experience and knowledge needed to run a logistics business. His experience, expertise, and connections in the industry will be our most valuable assets.
Thaddeus began researching what it would take to create his own logistics company and did a thorough analysis on the costs, market, demographics, and competition. Thaddeus has now compiled enough information to develop his business plan in order to approach investors.
Rose City Logistics’ History
Thaddeus Gladwell incorporated Rose City Logistics as an S-Corporation on May 1st, 2023. Upon incorporation, Rose City Logistics was able to achieve the following milestones:
- Found a warehouse location and signed a Letter of Intent to lease it
- Developed the company’s name, logo, and website
- Determined equipment and fixture requirements
- Began recruiting key employees
Rose City Logistics’ Services
Rose City Logistics offers a suite of logistics and supply chain services to local businesses. These services include:
- Warehousing and storage
- Inventory management
- Order fulfillment and packaging
- Shipping and delivery
Industry Analysis
Logistics companies are the heart and veins of the economy. Many companies would not survive without building their own logistics fleet or trusting the help of logistics partners and services. Small businesses and e-commerce businesses are particularly dependent on logistics partners, as they often don’t have the space or resources to store and transport their products.
Logistics companies help store, manage, and transport inventory. This inventory can be delivered directly to a customer (through an online order) or be sent directly to the client to restock their business. Either way, logistics companies are essential and support the survival and growth of hundreds of industries.
According to Expert Market Research, the industry is currently valued at $9.96 trillion and is expected to reach $14.37 trillion by 2028. The industry is also expected to grow at a CAGR of 6.3% from now until then. Demand for logistics services is very high, which means that this is a great time to start a new logistics company in an underserved area.
Download the Logistics business plan template (including a customizable financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
We will primarily serve small and medium-sized businesses located in the Portland, Oregon area. We expect most businesses will be retail establishments, e-commerce businesses, and businesses in the food and beverage industry. Our clients will most likely have fewer than 500 employees and earn an annual revenue of less than $5 million.
Customer Segmentation
The company will primarily target the following customer segments:
- Retail establishments
- Businesses in the food and drink industry
- E-commerce businesses
Competitive Analysis
Direct and Indirect Competitors
Rose City Logistics will face competition from other companies with similar business profiles. A description of each competitor company is below.
Mt. Hood Logistics
Mt. Hood Logistics serves the logistics needs for large businesses in the healthcare, energy, and technology sectors that are located in the Portland metro area. They provide specialized services for these businesses, including careful storage and management of their inventory. They also provide 24/7 customer service and aim to create long-lasting relationships with their customers.
Though Mt. Hood Logistics is a local competitor, they only work with a few industries: healthcare, energy, and technology. We currently do not serve these industries so we don’t expect much competition from Mt. Hood Logistics.
American Shipping Co.
American Shipping Co is the largest logistics company in the nation. The company has hundreds of warehouses across the country, and owns a fleet of thousands of trucks to help deliver goods from coast to coast. They serve clients from all industries and offer specialized storage and transportation services for essential or dangerous products.
Though American Shipping Co. is a large national competitor, many local businesses are looking for a more regional touch. They feel left behind and unvalued because they are smaller clients. Rose City Logistics’ mission is to cater to small, local businesses. Therefore, we expect we will be a far more attractive option for businesses in our community.
E-Ship Inc.
E-Ship Inc. is a warehousing and logistics service that caters particularly to e-commerce businesses of all sizes. They provide storage, inventory, order fulfillment, and shipping services so that e-commerce businesses can focus on growing their operations. As such, their business is particularly attractive to small businesses and solopreneurs who don’t have the means or resources to manage their own inventory and orders.
Though E-Ship will continue to thrive, they are notorious for their lack of good customer service. Rose City Logistics will hire a team of customer service professionals so our clients always feel valued and can get their complaints resolved quickly.
Download the Logistics business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
Rose City Logistics enjoys several advantages over its competitors. These advantages include the following:
- Location: Rose City Logistics’ business is located in the heart of Portland and will cater to small businesses in the area.
- Management: Thaddeus Gladwell has been extremely successful working in the industry and will be able to use his previous experience to provide the best sales and customer service experience. His unique qualifications will serve customers in a much more sophisticated manner than our competitors.
- Relationships: Thaddeus knows many of the local leaders, business managers, and other influencers within Portland. His experience and connections will help the company develop an initial clientbase and grow its reputation.
Marketing Plan
Brand & Value Proposition
Rose City Logistics will offer the unique value proposition to its clientele:
- Client-focused logistics services
- Thorough and accurate inventory management services
- Speedy order fulfillment and shipping
- Convenient location
- Moderate pricing
Promotions Strategy
The promotions strategy for Rose City Logistics is as follows:
Social Media
Rose City Logistics will maintain a solid social media presence to engage with clients. Our social media accounts will offer unique promotions and discounts to entice new clients to try out our services.
Website/SEO
Rose City Logistics will invest heavily in developing a professional website that displays all of the features and benefits of its services. It will also invest heavily in SEO so that the brand’s website will appear at the top of search engine results.
Client Referral Programs
Rose City Logistics will create an aggressive client referral program that gives discounts to existing clients for every successful referral. This strategy will become more effective with time.
Direct Mail
Rose City Logistics will blanket businesses with direct mail pieces. These pieces will provide general information on Rose City Logistics, offer discounts and/or provide other enticements for people to use our services.
Pricing
Rose City Logistics pricing will be moderate, so clients feel they receive great value when utilizing our logistics services.
Operations Plan
The following will be the operations plan for Rose City Logistics.
Operation Functions:
- Thaddeus Gladwell will be the Co-Owner and President of the company. He will oversee all staff and manage client relations. Thaddeus has spent the past year recruiting the following staff:
- Steve Lopez – Co-Owner and CFO who will be responsible for overseeing the accounts payable, accounts receivable, and managing the accounting department.
- Beth Kotka – Staff Accountant will provide all client accounting, tax payments, and monthly financial reporting. She will report directly to Steve Lopez.
- Tim Garcia – Marketing Manager who will provide all marketing, advertising, and PR for Rose City Logistics.
- Jason Williamson – Safety Manager who will provide oversight on all maintenance and safety inspections of the vehicles and drivers.
- The company will also hire several warehouse associates, customer service professionals, and drivers to provide logistics services to our clients.
Download the Logistics business plan template (including a customizable financial model) to your computer here <–
Milestones:
Rose City Logistics will have the following milestones completed in the next six months.
- 05/202X Finalize lease agreement
- 06/202X Design and build out Rose City Logistics
- 07/202X Hire and train initial staff
- 08/202X Kickoff of promotional campaign
- 09/202X Launch Rose City Logistics
- 10/202X Reach break-even
Management Team
Rose City Logistics’ most valuable asset is the expertise and experience of its founder, Thaddeus Gladwell. He has been a logistics warehouse manager for several years and as such has extensive knowledge of how to run a logistics company. After years of helping large corporations with their supply chains, he is now eager to apply everything he knows to his new company, which is dedicated to helping small businesses located in Portland.
Though Thaddeus has never run a business of his own, he has worked in the logistics industry long enough to gain an in-depth knowledge of the operations (e.g., running day-to-day operations) and the business (e.g., staffing, marketing, etc.) sides of the industry. He has also hired several professionals to help him run other aspects of the business he is unfamiliar with.
Financial Plan
Key Revenue & Costs
Rose City Logistics’ revenues will come from the fees we charge our clients for utilizing our services.
The major costs will consist of salaries, vehicle maintenance costs, overhead expenses, and ongoing marketing expenditures.
Funding Requirements and Use of Funds
Rose City Logistics is currently seeking $1,400,000 to launch. The capital will be used for funding capital expenditures, salaries, marketing expenses, and working capital. Specifically, these funds will be used as follows:
- Warehouse design/build: $500,000
- Vehicle purchase and maintenance: $200,000
- Equipment, fixtures, and supplies: $300,000
- Six months of overhead expenses (payroll, rent, utilities): $200,000
- Marketing costs: $100,000
- Working capital: $100,000
Download the Logistics business plan template (including a customizable financial model) to your computer here <–
Key Assumptions
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.
- Number of client contracts:
- FY 1: 30
- FY 2: 50
- FY 3: 75
- FY 4: 100
- FY 5: 125
Financial Projections
Income Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
Logistics Business Plan FAQs
What Is a Logistics Business Plan?
A logistics business plan is a plan to start and/or grow your logistics business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your Logistics business plan using our Logistics Business Plan Template here.
What are the Main Types of Logistics Businesses?Â
There are a number of different kinds of logistics businesses, some examples include: Procurement Logistics Business, Production Logistics Business, Sales Logistics Business, and Reverse Logistics Business.
How Do You Get Funding for Your Logistics Business Plan?
Logistics businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
What are the Steps To Start a Logistics Business?
Starting a logistics business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Logistics Business Plan - The first step in starting a business is to create a detailed logistics business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your logistics business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your logistics business is in compliance with local laws.
3. Register Your Logistics Business - Once you have chosen a legal structure, the next step is to register your logistics business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your logistics business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Logistics Equipment & Supplies - In order to start your logistics business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your logistics business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.Â
Learn more about how to start a successful logistics business: