Business Proposal Final
Business Proposal Final
1. Industry Overview
The trucking industry plays a very important role in the economy of the world; they provide
essential services to the South African economy by transporting large quantities of raw materials,
machines, equipment, dirt, rocks, building materials, and finished goods over land—typically from
manufacturing plants to retail distribution centers and from warehouses to construction sites. As
matter of fact, heavy duty trucks are indispensable in the construction industry.
The trucking industry is responsible for the majority of freight movement over land, and is a major
stakeholder in the manufacturing, transportation, and warehousing industries in South Africa and in
other parts of the world.
In the South Africa, Large trucks and buses drivers require a commercial driver’s license (CDL)
before they can be permitted to operate. The activities in the trucking industry is regulated by the
South African Department of Transportation (SADOT),The South African National Roads
Agency SOC Ltd.
They ensure that drivers and trucking companies adhere to safety rules and regulations and also that
potential truck drivers undergo special training on how to handle large vehicle before applying and
obtaining their commercial driver’s license (CDL).
Statistics has it that food and food products, lumber or wood products, as well as petroleum or coal
account for 34.8 percent of truck traffic in the SouthAfrican and by volume, clay, glass, concrete
and stone, farm products, as well as petroleum and coal account for 35.6 percent of truck traffic.
The advancement in technology in areas such as computers, satellite communication, and the
internet, have contributed immensely to the growth of the industry. The advancement in technology
is responsible for increase of productivity of trucking companies operations, it helps them
effectively monitor their trucks and their drivers and it helps driver save time and effort.
The trucking industry is not restricted to trailers or large trucks hauling goods from destination to
another via interstate highways, it also involves smaller trucks that helps transport smaller quantity
of goods from one destination within a city to another destination within same city. Trucking
business is not only about transporting goods over a long distance.
As a matter of fact, in RSA about 66 percent of truck tonnage moves distances of 200KM or less;
local and regional hauls account for almost half of all truck revenues and are they are the
preferred choice for private carriers.
No doubt starting and operating a trucking business can be challenging, but the truth is that it can be
rewarding at the same time. One good thing about the industry is that it is open for both big time
investors who have the capacity to start the business with fleet of trucks and aspiring entrepreneurs
who may one to start with just one truck.
2. Executive Summary
Urbanite Enterprises is a trucking company that will be based in UNIT 11 ROSBIN, 21 PRINCESS
AVENUE, RANDBURG, GAUTENG, 2194
We will provide daily freight services (trucking services, moving services & supplies, and bulk
material sales & supplies) on one skid to full truckloads in and around RSA.
Urbanite Enterprises will ensure that we abide by the rules and regulations of the trucking
industry and we will only hire experienced and qualified drivers with valid commercial driver’s
license (CDL). Our customers and potential customers alike can be rest assured that they will get
quality services at competitive rates.
We will go the extra mile to ensure the safety of goods under our care and our customers get value
for their money. At Urbanite Enterprises our goal is to provide excellent service to our customers
and we pride ourselves on the integrity and competence of our company and our employees.
Urbanite Enterprises will ensure that all our deliveries are on time and we supersede the expectation
of our customers. We will only put trucks that are in top shape on the road, and all our drivers will
be trained to be courteous, friendly and to abide by the rules and regulations of the industry.
We will maintain and take proper care of our drivers as well as our trucks and equipment. Urbanite
Enterprises is a family business; it is owned by Job Mkwananzi and family.
6. SWOT Analysis
Going by our vision, our mission and the kind of business we want to set – up, we don’t have any
other option than to follow due process. Following due process involves hiring business a
consultant to help us conduct SWOT analysis and prepare a trucking company marketing plan for
our business.
Urbanite Enterprises hired the services of a seasoned business consultant with bias for start – ups in
RSA to help us conduct a thorough SWOT analysis and to guide us in formulating other business
strategies that will help us grow our business and favorable compete in the trucking industry.
As a company, we look forward to maximizing our strength and opportunities and also to work
around our weaknesses and threats. Here is a summary from the result of the SWOT analysis that
was conducted on behalf of Urbanite Enterprises;
Strength:
Our areas of strength in S.A include; size advantages, cost advantages, supply chain, customer
loyalty and strong reputation amongst domestic industry players.
Weakness:
Our weakness could be lack of finance, high debt burden, cost structure, lack of scale compared to
our peers who have already gained ground in the industry.
Opportunities:
The opportunities that are available to us as a trucking company in South Africa are online market,
new services, new technology, and of course the opening of new markets
Threat:
Some of the threats that we are likely going to face are mature markets, bad economy (economy
downturn), stiff competition, volatile costs, and rising fuel prices.
7. MARKET ANALYSIS
Market Trends
The market trends as it involves the trucking industry especially in South Africa is indeed dynamic
and at the same challenging. But one thing is certain, once a trucking company can gain credibility,
it will be much easier for the company to secure permanent deals / contracts with big time
merchants and construction companies who are always moving goods and equipment from one part
of South Africa to another part.
No doubt some of the major factors that count positively in this line of business are trust, honesty,
good relationship management and of course timely and safe delivery.
8. Our Target Market
Our target market are basically every one (organizations and individual as well who have cause to
move things from one location to another location. We cover both short distance (inter province)
and long distance (intra provincial). We are in business to move stuffs and anyone who has stuffs to
move within South Africa, can contact us.
In other words, our target market is the whole of the South Africa and below is a list of the people
and organizations that we have plans to do business with;
Merchants (importers, exporters, traders, suppliers, wholesalers, and dealers)
Manufacturers
Construction companies
Household
Corporate organizations
Small business owners
The timber industry
Oil and gas sector
Our competitive advantage
Our major competitive advantage is the vast industry experience and solid reputation of our owner,
Job Mkwananzi. Urbanite Enterprises no doubt is a new trucking company, which is why we took
our time to do a thorough homework before launching the business.
We were able to highlight some factors that will give us competitive advantage in the
marketplace; some of the factors are trust, honesty, good network and excellent relationship
management, strong management, strong fleet operations, direct access to all Atlantic and Indian
Coast ports, our transportation network would serve some of the largest population centers in
S.A., our size advantages, cost advantages, supply chain, customer loyalty and strong reputation
amongst domestic industry players.
Another competitive advantage that we are bringing to the industry is the fact that we have designed
our business in such a way that we can comfortably work with both individuals who may want to
make use of small trucks to transport goods within the city and also big conglomerates who are
involved in massive movements of goods and equipment from one part of S.A. to another part.
Lastly, our employees will be well taken care of, and their welfare package will be amongst the best
in the industry meaning that they will be more than willing to build the business with us and help
deliver our set goals and achieve all our objectives.
9. SALES AND MARKETING STRATEGY
Sources of Income
Urbanite Enterprises will ensure that we leverage on our strength and the opportunities available to
us in the S.Amarket to generate enough income that will help us drive the business to stability. We
will go all the way to explore every available sources of income in the trucking industry. Below are
the sources we intend exploring to generate income for Urbanite Enterprises;
Moving supplies
On-time pickup and delivery
Local and long distance movement
Heavy duty equipment movement
Construction equipment movement
Agricultural equipment movement
Movement of timbers
Movement of oil and gas products
10. Sales Forecast
We are well positioned to take on the available market in S.A. and we are quite optimistic that we
will meet out set target of generating enough income / profits from the first month or operations and
grow the business and clientele beyond Gauteng to other provinces in S.A
We have been able to critically examine the trucking industry and we have analyzed our chances
in the industry and we have been able to come up with the following sales forecast. The sales
projection is based on information gathered on the field and some assumptions that are peculiar
to startups in South Africa
Marketing Strategy and Sales Strategy
Networking is an effective way to begin building your client base and we have plans in place to
leverage on all our networks. In view of that, we will look out for gatherings where we can network
with captain of industries, entrepreneurs, manufacturers and merchant et al. As a matter of fact, our
first port of call will be to connect with the nearest Chamber of Commerce; we are likely going to
get our first major deal from them.
At Urbanite Enterprises all our employees will be directly or indirectly involved in sales and
marketing. We will create provision for our employees to earn commission when they bring in
business for the organization. We will also encourage freelancers to work with us; whenever they
refer clients to us to will earn a percentage of the deal.
Lastly, we will leverage on the power of the media by advertising our services using both online
and offline platforms. We will work hard to ensure that get repeated business from any business
deal we execute and also we will encourage our customers to help us refer their friends to us. Part
of our strategy is to reward loyal customers and to leverage on word of mouth marketing from
satisfied customers.
Over and above, we have perfected strategies to network with people who are likely to refer
business our way. In summary, Urbanite Enterprises will adopt the following sales and marketing
strategies in sourcing for clients for our business;
Introduce our business by sending introductory letters alongside our brochure to stake
holders in the construction industry, manufacturing industry, oil and gas industry, timber
merchant etc.
Promptness in biddine for contracts
Advertise our business in haulage magazines, newspapers, TV stations, and radio stations etc
List our business on yellow pages
Attend expos, seminars, and business fairs et al
Create different packages for different category of clients in order to work with their budgets
and still deliver quality services
Leverage on the internet to promote our business
Direct marketing
Word of mouth (referral marketing)
11. Publicity and Advertising Strategy
Any business that wants to grow beyond the corner of the street they are operating must be ready
and willing to utilize every available means (conventional and non – conventional means) to
advertise and promote the business. We intend growing our business beyond Gauteng which is why
we have perfected plans to build our brand via every available means.
Below are the platforms Urbanite Enterprises intend leveraging on to promote and advertise her
trucking business;
Place adverts on both print and electronic media platforms
Sponsor relevant TV shows in the future
Maximize our company’s website to promote our business
Leverage on the internet and social media platforms like; Instagram, Facebook ,Twitter,
LinkedIn, Badoo, Google+ and other platforms (Trucking online forums) to promote our
business.
Distribute our fliers and handbills in targeted areas from time to time
Attend chambers of commerce meetings with the aim of networking and introducing our
business.
12. Our Pricing Strategy
Urbanite Enterprises will have lease management with various companies and the company’s
pricing is based on miles per thousands of tons of cargo transported. We have perfected our plans to
charge competitive rates since we have minimal overhead compared to our competition in the
industry.
We will ensure that we leverage on price to win over customers; our prices will be affordable and
negotiable. The fact that our business door is open to both individuals and corporations means
that we will have different price range for different category of clients. As the business grow, we
will continue to review our pricing system to accommodate a wide range of clientele.
Payment Options
Our payment policy will be inclusive because we are quite aware that different people prefer
different payment options as it suits them but at the same time, we will not accept payment by cash
because of the volume of cash that will be involved in most of our transactions. Here are the
payment options that Urbanite Enterprises will make available to her clients;
Payment by via bank transfer
Payment via online bank transfer
Payment via check
Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our clients pay us without
any difficulty. Our bank account numbers will be made available on our website and promotional
materials to clients who may want to deposit cash.