Business Overview

Sara Mohammed Farah offers transportation services throughout the Dire DAWA, Ethiopia .
With a total of #01 trucks ranging from light to heavy, Sara Mohammed Farah can meet any
transportation need and works with small to large sized businesses. Timeliness, security, and
cost-efficiency are the main driving factors for the success of SARA MOHAMMED .Through
availed technology; all transactions and deliveries are monitored to make sure that there are no
delays or damages on the goods that are being transported. Every delivery is handled with the
highest form of professionalism by a responsible and well-trained crew that strives to provide the
best service and experience to every client.

Products Served

SARA MOHAMMED will be able to provide local and long-distance transportation services:

 General Freight
 Refrigerated Freight

 Dry Bulk Freight

Customer Focus

SARA MOHAMMED will primarily serve manufacturers and distributors within Ethiopia. The
demographics of these customers are as follows:

 300,000 manufacturing businesses

 400,000 wholesale businesses

 1.1 million retail businesses

Management Team

SARA MOHAMMED is headed by its founder, Sara Mohammed who graduated from
[University] with a degree in Business Administration. Prior to starting Sara Mohammed
Farah, Sara engaged as self-business owner and manager for more 10 years where she was able
to learn the ins and outs of the transportation industry demand. This experience will be the
company’s most valuable asset.

Success Factors

SARA MOHAMMED is uniquely qualified to succeed for the following reasons:

 SARA MOHAMMED will fill a specific market niche in the growing manufacturing and
wholesale industries.
 In addition, we have surveyed the target market and received extremely positive feedback
saying that they explicitly want to make use of our services when launched.

 Dire Dawa has a robust business environment with a large number of businesses needing
transportation services like ours

 The management team has a track record of success in the trucking services business.

Financial Highlights

SARA MOHAMMED is seeking a total funding of ETB 3,312,000 of debt capital to open its
trucking business. The capital will be used for funding capital expenditures and location build-
out, hiring initial employees, marketing expenses and working capital.

Specifically, these funds will be used as follows:

 Headquarters design/build: $90,000

 Working capital: $140,000 to pay for marketing, salaries, and lease costs until SARA
MOHAMMED reaches break-even

Topline projections over the next five years are as follows:

Year 1 Year 2 Year 3

Revenue ETB 10,627,200.00 ETB 24,714,316.8 ETB 28,905,076.8
Total Expenses 9,210,168.00 21,417,426.94 25,031,796.51
EBITDA $98,405 $694,757 $897,169.00
 Year 1 Year 2 Year 3
Depreciation 238,464 238,464 238,464.00
EBIT $81,845 $678,197 $880,609.00
Interest $18,554 $16,235 $13,916.00
Pre Tax Income $63,291 $661,962 $866,694
Income Tax Expense $22,152 $231,687 $303,343
Net Income $41,139 $430,276 $563,351

II. Company Overview

Who is SARA MOHAMMED offers transportation services throughout the Dire Dawa area.
With a total of [01] trucks ranging from light to heavy, SARA MOHAMMED can meet any
transportation need and works with small to large sized businesses. Timeliness, security, and
cost-efficiency are the main driving factors for the success of SARA MOHAMMED. Through
advanced technology, all transactions and deliveries are monitored to make sure that there are no
delays or damages on the goods that are being transported. Every delivery is handled with the
highest form of professionalism by a responsible and well-trained crew that strives to provide the
best service and experience to every client.

SARA MOHAMMED’s History

As the number of businesses grow in the U.S., the need for a reliable transportation vehicle also
increases. In [year], [Founder’s Name] decided to meet this market need by investing in a small
fleet of trucks to provide transportation services to small businesses. In [x] years, [Founder] was
able to grow its business to a fleet of [x] trucks.

Upon incorporation, SARA MOHAMMED was able to achieve the following milestones:

 Found a business location and signed Letter of Intent to lease it

 Developed the company’s name, logo and website located at [website]

 Determined equipment and fixture requirements

 Began recruiting key employees

SARA MOHAMMED’s Products/Services

SARA MOHAMMED has over [01] freight trucks in its fleet available for local and long
distance trucking services. Each truck is regularly maintained to ensure the clients that their
goods will be delivered on time and in best condition.

SARA MOHAMMED will be able to provide these local and long-distance transportation
services:

 General Freight
 Refrigerated Freight

 Dry Bulk Freight

III. Industry Analysis

The Trucking industry’s performance mostly follows the United States economy, so increases in
consumer spending, manufacturing output and trade volumes have created high demand for
industry services over the past five years. Further, increases in fuel prices positively affect the
industry as revenue typically increases in line with fuel costs, as operators are dependent on fuel
surcharge revenue. Higher manufacturing output and commodity prices have also presented
another opportunity for operators.

Over the next five years, recovering manufacturing activity and greater retail spending are
expected to ensure higher freight volumes for the Trucking industry, as retail inventory expands
to satisfy growing consumer spending.

Further, rising trade volumes will likely increase shipments to and from US ports, requiring more
trucking companies to move goods. These improvements are partially noted in the rise of the
freight transportation services index, which is expected to increase at an annualized rate of 3.3%.
As global and domestic shipping rates rise, the per-mile value of industry services is anticipated
to rebound.
IV. Customer Analysis
Demographic Profile of Target Market

SARA MOHAMMED will primarily serve businesses within the Ethiopia. That may
need local and long distance transportation services for their products or supplies.

The business breakdown in the Dire Dawa is as follows:

All establishments
Total for all sectors 7,860,674
Agriculture, forestry, fishing and hunting 23,363
Mining, quarrying, and oil and gas extraction 25,732
Utilities 18,965
Construction 715,641
Manufacturing 290,936
Wholesale trade 409,656
Retail trade 1,064,449
Transportation and warehousing 237,308
Information 153,934
Finance and insurance 478,224
Real estate and rental and leasing 406,568
Professional, scientific, and technical services 914,718
Management of companies and enterprises 56,363
Administrative and support and waste management and remediation 419,844
services
Educational services 105,173
Health care and social assistance 897,635
 All establishments
Arts, entertainment, and recreation 143,396
Accommodation and food services 726,167
Other services (except public administration) 764,840
Industries not classified 7,762
Customer Segmentation

We will primarily target the following customer segments:

 Manufacturing businesses are currently among the fast growing sectors in the
U.S.. This means that the need for trucking services is increasing to assure
speedy transactions between businesses.
 Wholesale Businesses- With the increase in manufacturing, wholesale
businesses need reliable transportation to get goods downstream.

 Retail businesses- Retail sales are booming in the U.S. This sector requires
reliable transportation to get the goods they need so they can consistently
deliver products to consumers

V. Competitive Analysis
Direct & Indirect Competitors

T4 Trucking
T4 Trucking provides truckload transportation services across North America fueled by a fleet of
some 1,500 tractors, 3,000 trailers, 100 straight trucks, and 45 flatbeds. Auto OEMs in the US
and Canada (Ford, GM, Honda, and Toyota) are among the company’s major customers, as well
as many Tier 1 auto suppliers.

T4 Trucking offers a slate of transportation and logistics services, from short- and long-haul to
just-in-time, jointly with affiliates E.D.S. (expedited delivery), RayCan Transport (truckload
service in Canada and the US), and Rush Distribution Service (logistics).
Reliable Transportation
Established in 1986, Reliable Transportation is a domestic intermodal and door-to-door
truckload transportation company operating throughout the regional areas of Dire Dawa and its
neighbor . Reliable Transportation specializes in Intermodal area to and from the Dire Dawa,
Harer , Maya , and , and also serves the Dry port of Dire Dawa .

The company maintains active interchange agreements with all of the major rails, steamship
lines, and equipment providers throughout its service areas, and will be an active and a member
regionally influentially Smart Way Transport Partner. The company boasts over 01 owner-
operator trucks.

Competitive Advantage

SARA MOHAMMED enjoys several advantages over its competitors. These advantages include:

 Location: SARA MOHAMMED’s business is not limited to its location because it

transports goods and services nationwide.
 Client-oriented service: SARA MOHAMMED will have a full-time customer service and
sales manager to keep in contact with clients and answer their everyday questions.

 Management: [Founder’s Name] 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 SARA MOHAMMED competitors.

 Relationships: SARA knows many of the local leaders, business managers and other
influencers within Dire Dawa]. With her more than years of experience and good
relationships with business leaders in the area, he will be able to develop an initial client
base.

VI. Marketing Plan

The SARA MOHAMMED Brand

SARA MOHAMMED brand will focus on the Company’s unique value proposition:
  Client-focused trucking services, that treat each client individually and get the job done
right the first time
 Service built on long-term relationships

 Thorough knowledge of our clients and their varying needs

Promotions Strategy

SARA MOHAMMED expects its target market to be individuals working and/or living within
Dire Dawa. SARA’s promotions strategy to reach these individuals includes:

Publications
SARA MOHAMMED will announce its product launching several weeks in advance through
publicity pieces in multiple newspapers and publications. Regular advertisements will run to
maintain exposure to relevant markets.

Client Referral Programs

Sara Mohammed Farah will create an aggressive client referral program that gives discounts to
existing clients for every successful referral.

Direct Mail
Sara Mohammed Farah will blanket businesses with direct mail pieces. These pieces will
provide general information on Sara Mohammed Farah , offer discounts and/or provide other
enticements for people to use our services.

Online Marketing

SARA MOHAMMED will maintain a website and publish an update on on-going promotions,
discounts and new feature upgrades on our fleet of trucks. It will invest resources in two forms of
geographically-focused internet promotion—organic search engine optimization and pay-per-
click advertising. The Company will develop its website in such a manner as to direct as much
traffic from search engines as possible. Additionally, it will use highly-focused, specific
keywords to draw traffic to its website.
VII. Operations Plan
Functional Roles

Sara Mohammed Farah will carry out its operations at its headquarters in Dire Dawa. The
business location will be used for sales, customer service, client meetings and bookings. It will
house 10 full-time staff.

Sara Mohammed will work as the primary salesperson for the company’s services, although the
assistant manager and administrative assistant may be trained in sales activities over time.

The Company intends to employ 01 admin staff, 01 mechanics for the trucks’ maintenance, 02
drivers and 02 security personnel. In order to execute on SARA MOHAMMED’s business
model, the Company’s employees divide the following roles:

Service Functions

 Assistant Manager
 Mechanics

 Drivers

 Customer service representatives

 Security personnel

Administrative Functions

 General & administrative functions including marketing, bookkeeping, etc.

 Delivery scheduling

Milestones

SARA MOHAMMED’s long term goal is to become the most reliable and cost-efficient trucking
company in the Country. We seek to be the standard by which other providers are judged.
The following are a series of steps that lead to our vision of long-term success. SARA
MOHAMMED expects to achieve the following milestones in the following [xyz] months:

Date Milestone
[Date 1] Finalize lease agreement
[Date 2] Design and build out SARA MOHAMMED
[Date 3] Hire and train initial staff
[Date 4] Kickoff of promotional campaign
[Date 5] Launch SARA MOHAMMED
[Date 6] Reach break-even

VIII. Management Team

Management Team Members

SARA MOHAMMED is headed by its founder, [Founder’s Name] who graduated from
[University] with a degree in Business Administration. Prior to starting SARA MOHAMMED,
[Founder’s Name] worked as an operations manager at a freight logistics company [x] years
where he was able to learn the ins and outs of the transportation industry. This experience will be
the company’s most valuable asset.

Hiring Plan

Sara Mohammed will serve as the Manager of SARA MOHAMMED .In order to launch, it
needs to hire the following personnel:

 Sales and customer service: 01 full-time employees to manage the day to day operations
and customer service
 Truck mechanics: 2 on-call experienced mechanics

 Drivers: Skilled, responsible drivers who are willing to travel locally or long-distance
IX. Financial Plan
Revenue and Cost Drivers

SARA MOHAMMED’s revenues will come primarily from transportation services.

The lease and maintenance of the fleet of trucks and labor expenses are the key cost drivers of
SARA MOHAMMED. The major cost drivers for the company’s operation will consist of:

 Salaries
 Truck leases and maintenance

 Lease on business location

Ongoing marketing expenditures are also notable cost drivers for SARA MOHAMMED.

Capital Requirements and Use of Funds

SARA MOHAMMED is seeking a total funding of 3,312,000.00 of debt capital to open its
trucking business. The capital will be used for funding capital expenditures and location build-
out, hiring initial employees, marketing expenses and working capital.

Specifically, these funds will be used as follows:

 Headquarters design/build: 1,296,000.00

 Working capital: 2,016,000.00 to pay for marketing, salaries, and lease costs until SARA
MOHAMMED reaches break-even

Key Assumptions

The following table reflects the key revenue and cost assumptions made in the financial model:

Number of client contracts Annually

FY 1 40
FY 2 45
FY 3 55
 Number of client contracts Annually

Annual Lease ( per location) $50,000

3 Year Annual Income Statement

Year 1 Year 2 Year 3

Revenues

Total Revenues $3,628,800 $8,001,504 $8,821,656

Expenses & Costs

Cost of goods sold $834,624 $1,760,328 $1,764,331.2

Lease $864,000 $885,600 $907,747.2
Marketing $288,000 $295,200 295,200
Salaries $133,890 $204,030 $224,943
Other Expenses $3,500 $4,000 $4,500

Total Expenses & Costs $271,850 $412,775 $435,504

EBITDA ($19,850) $142,885 $177,112

Depreciation $36,960 $36,960 $36,960
EBIT ($56,810) $105,925 $140,152
Interest $23,621 $20,668 $17,716
PRETAX ($80,431) $85,257 $122,436
INCOME
Net Operating Loss ($80,431) ($80,431) $0
Income Tax Expense $0 $1,689 $42,853
 Year 1 Year 2 Year 3
NET INCOME ($80,431) $83,568 $79,583
Net Profit Margin - 15.00% 13.00%
(%)
3 Year Annual Balance Sheet

Year 1 Year 2 Year 3

ASSETS
Cash $16,710 $90,188 $158,957
Accounts receivable $0 $0 $0
Inventory $21,000 $23,153 $25,526
Total Current Assets $37,710 $113,340 $184,482

Fixed assets $246,450 $246,450 $246,450

Depreciation $36,960 $73,920 $110,880
Net fixed assets $209,490 $172,530 $135,570

TOTAL ASSETS $247,200 $285,870 $320,052

LIABILITIES &
EQUITY
Debt $317,971 $272,546 $227,122
Accounts payable $9,660 $10,187 $10,210
Total Liabilities $327,631 $282,733 $237,332

Share Capital $0 $0 $0
Retained earnings ($80,431) $3,137 $82,720
Total Equity ($80,431) $3,137 $82,720
 Year 1 Year 2 Year 3

TOTAL LIABILITIES & $247,200 $285,870 $320,052

EQUITY
3 Year Annual Cash Flow Statement

Year 1 Year 2 Year 3

CASH FLOW FROM OPERATIONS

Net Income (Loss) ($80,431) $83,568 $79,583
Change in working capital ($11,340) ($1,625) ($2,350)
Depreciation $36,960 $36,960 $36,960
Net Cash Flow from Operations ($54,811) $118,902 $114,193

CASH FLOW FROM INVESTMENTS

Investment ($246,450) $0 $0
Net Cash Flow from Investments ($246,450) $0 $0

CASH FLOW FROM FINANCING

Cash from equity $0 $0 $0
Cash from debt $317,971 ($45,424) ($45,424)
Net Cash Flow from Financing $317,971 ($45,424) ($45,424)

SUMMARY
Net Cash Flow $16,710 $73,478 $68,769
Cash at Beginning of Period $0 $16,710 $90,188
Cash at End of Period $16,710 $90,188 $158,957