shuttle business(lax to la and ventura county) by rajeev varma datla saikrishna reddy eppa syed...
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SHUTTLE BUSINESS(LAX TO LA AND VENTURA COUNTY)
BY
RAJEEV VARMA DATLA
SAIKRISHNA REDDY EPPA
SYED MUHAMMAD ALI KAZMI
MUHAMMAD MUDDASIR KHAN
MAHEESHA SAMANTHAPUDI
NAJMUSSAQIB
TEAM MEMBERS
Muhammad Muddasir Khan
OVERVIEW
Muhammad Muddasir Khan
Introduction Muhammad Muddasir Khan
Vehicle Muhammad Muddasir Khan
Cities in LA and Ventura County Syed Muhammad Ali Kazmi
Office & Staff Syed Muhammad Ali Kazmi
Permits $ License Najmussaqib
Assumptions Najmussaqib
Fares SaiKrishna Reddy Eppa
Start Up Expenses SaiKrishna Reddy Eppa
Monthly Expenses Rajeev Varma Datla
Projected Profit and Loss Maheesha Samanthapudi
Breakeven Analysis Maheesha Samanthapudi
Cash Flows Maheesha Samanthapudi
Conclusion Rajeev Varma Datla
INTRODUCTION
• METRO SHUTTLE TRANSPORTATION SERVICE IS A LAX BASED SERVICE, PROVIDING
SHARED-RIDE DOOR TO DOOR TRANSPORTATION SERVICE.
• PROVIDES SERVICE FOR THE PASSENGER FROM LAX TO 6 DIFFERENT CITIES IN LA
COUNTY AND 4 DIFFERENT CITIES IN VENTURA COUNTY
• CURRENTLY OPERATES 10 SHUTTLES
• WORKING HOURS : 5AM TO MIDNIGHT
Muhammad Muddasir Khan
VEHICLE USED BY THE COMPANY
• MODEL: FORD E150, 7 PASSENGER
• COST: $ 28,753 PER CAR
• 7 PASSENGER
• 3 DOOR
• MILEAGE : 14 MPG
Muhammad Muddasir Khan
SERVICE PROVIDED TO CITIES IN LA COUNTY
City Round trip miles Round trip travel time
Number of Trips
Downtown 40 1 hour 12
Burbank 60 1 hour 45 min 8
North Hollywood 60 1 hour 45 min 8
Glendale 50 1 hour 30 min 10
Long Beach 60 1 hour 12
West Covina 80 1 hour 45 min 8
Syed Muhammad Ali Kazmi
SERVICE PROVIDED TO CITIES IN VENTURA COUNTY
City Round trip miles Round trip travel time
Number of trips
Simi Valley 100 miles 2 hours 5 trips
Thousand Oaks 90 miles 1 hr 10 min 10 trips
Ventura 140 miles 2 hr 30 min 4 trips
Oxnard 120 miles 3 hours 3 trips
Syed Muhammad Ali Kazmi
OFFICE
• TOTAL OF 3 OFFICES.
• HEADQUARTERS – NEAR LAX (INCLUDES OFFICE SPACE + PARKING SPACE)
• 1 MINI OFFICE IN GLENDALE FOR LA COUNTY (INCLUDES 1 PARKING SPACE)
• 1 MINI OFFICE IN VENTURA FOR VENTURA COUNTY (INCLUDES 1 PARKING SPACE)
Syed Muhammad Ali Kazmi
STAFF• 3 DRIVERS PER CAR WHO WORK 1 SHIFT EVERYDAY. ALL THE DRIVERS ARE
EMPLOYED AT
• AT THE HEADQUARTERS:
1. 1 RECEPTIONIST,
2. 3 PHONE OPERATORS,
3. 1 MECHANIC,
4. 1 JANITOR
• 3 PEOPLE COORDINATING AT THE LA AIRPORT
• AT THE OFFICE AT GLENDALE: 1 COORDINATOR
• AT THE OFFICE AT VENTURA: 1 COORDINATOR Syed Muhammad Ali Kazmi
PERMITS AND LICENSE
Permit / License County/ State/ Federal
Building and Construction Permit Los Angeles County
Burglar Alarm Permit Los Angeles County
Business License - Business Tax Certificate Los Angeles County
Fictitious Business Name - Doing Business As Statement Los Angeles County
Corporation, Company or Partnership Filings California State
D.M.V. Pull Notice Program California State
Department of Motor Vehicles Occupational Licensing California State
Registration Form for Employers California State
State Income Tax Inform California State
Employer Identification Number FederalNajmussaqib
ASSUMPTIONS
• BANK LOAN : 2.25%
• CAR LOAN : 1.99%
• MARR : 10%
• INCOME TAX : 35%
• BOOKINGS INCREASE BY 10% EVERY MONTH
Najmussaqib
PERSONNEL PLAN
Year 1 Year 2 Year 3
Driver $1,200,000 $1,320,000 $1,440,000
Receptionist $54,000 $59,400 $64,800
Phone operator $192,000 $211,200 $230,400
Janitor $42,000 $46,200 $50,400
Coordinators $204,000 $224,400 $244,800
Coordinator at Glendale
$54,000 $59,400 $64,800
Coordinator at Ventura
$54,000 $59,400 $64,800
Total Payroll $1,800,000 $1,980,000 $2,160,000 Najmussaqib
FARES
City Fares
Downtown $40
Burbank $35
North Hollywood $35
Glendale $25
Long Beach $35
West Covina $45Simi Valley $50Thousand Oaks $50Ventura $75Oxnard $70
SaiKrishna Reddy Eppa
START UP COSTS
Purpose Price
Down payment for 10 Shuttles $57150
Advertising $50000
Office Equipment $20000
Business Loan payment $8750
Rent Security Deposit $2000
Legal fee $2000
Website creation $100
SaiKrishna Reddy Eppa
Chart Title
Chart Title
SaiKrishna Reddy Eppa
Down pay-ment for 10
Shuttles
Advertising Office Equipment
Business Loan payment
Rent Down payment
Legal fee Website creation
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000 $57,150
$50,000
$20,000
$8,750
$2,000 $2,000 $100
START UP COSTS
FUEL COSTCity Number of round
trips(per day)
Fuel cost (@ $4 per gallon)
Downtown 12 trips 137.15
Burbank 8 trips 137.15
North Hollywood 8 trips 137.15
Glendale 10 trips 142.85
Long Beach 12 trips 205.75
West Covina 8 trips 182.85
Simi Valley 5 trips 142.85
Thousand Oaks 10 trips 257.15
Ventura 4 trips 160
Oxnard 3 trips 102.85
SaiKrishna Reddy Eppa
MONTHLY EXPENSES
Purpose Price
Salaries $150000
Fuel cost $48175
Vehicle maintenance $33720
Rent $15000
Vehicle Insurance $11500
Advertisement $10000
Utilities $5000
Website Maintenance $500
Rajeev Varma Datla
Salarie
s
Fuel cos
t
Vehicl
e m
aint
enan
ceRen
t
Vehicl
e In
sura
nce
Adver
tisem
ent
Utilities
Web
site
Maint
enan
ce
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000 $150,000
$48,175 $33,720
$15,000 $11,500 $10,000 $5,000 $500
Monthly Expenses
Rajeev Varma Datla
ESTIMATED EXPENSES FOR THREE YEARS
Year 1 Year 2 Year 3
Salaries $1,800,000 $1,980,000 $2,160,000
Fuel cost $578,100 $602,100 $626,100
Vehicle maintenance
$404,640 $408,000 $420,000
Rent $180,000 $192,000 $204,000
Vehicle Insurance $138,000 $138,000 $138,000
Advertisement $120,000 $144,000 $168,000
Utilities $12,000 $18,000 $24,000
Website Maintenance
$6,000 $6,600 $7,200
Total $3,238,740 $3,488,700 $3,747,300 Rajeev Varma Datla
PROFIT AND LOSSYear 1 Year 2 Year 3
Expenses $3,238,740 $3,488,700 $3,747,300
Revenue $2,435,303 $4,466,728 $6,280,278
BTCF -$803,437 $978,028 $2,532,978
Principal $665,480 $682,309 $699,563
Interest $79,909 $63,080 $45,825
Principal $49,519 $50,513 $51,527
Interest $4,679 $3,685 $2,670.09
Depreciation $59,650 $95,683 $57,829
Taxable income $0 $815,580 $2,426,653
Income taxes $0 $244,674 $727,995
ATCF -$849087 $728,693 $1,804,982
PW= $1,118438
Maheesha Samanthapudi
Maheesha Samanthapudi
EOY1 EOY2 EOY3
($1,000,000)
($500,000)
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
($849,087)
$728,693
$1,804,982
Yearly profit/loss
Maheesha Samanthapudi
1 2 3 4 5 6 7 8 9 10 11 12
-160000
-140000
-120000
-100000
-80000
-60000
-40000
-20000
0
20000
Monthly Profit/Loss
BREAKEVEN ANALYSIS
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 200
50000
100000
150000
200000
250000
300000
350000
400000
450000
Month Expenses Revenue
Maheesha Samanthapudi
CASH FLOW DIAGRAM
Maheesha Samanthapudi
1 2 3 4 5 6 7 8 9 10 11 12
-300000
-200000
-100000
0
100000
200000
300000
400000
Monthexpensesrevenue
Maheesha Samanthapudi
1 2 3
-6000000
-4000000
-2000000
0
2000000
4000000
6000000
8000000
-3238740 -3488700 -3747300
2435303
4466728
6280278
Cash Flow
Expenses Revenue
CONCLUSION
Rajeev Varma Datla
• CONSIDERING THE VARIOUS ASPECTS OF A SHUTTLE TRANSPORTATION SERVICE, THE STARTUP AND MONTHLY COSTS WERE ESTIMATED.
• FURTHERMORE, THE CASH FLOWS FOR THE FIRST THREE YEAR OF THE BUSINESS WERE CALCULATION.
• BASED ON THE CALCULATION, WE BELIEVE THE SHUTTLE TRANSPORTATION BUSINESS HAS FURTHER SCOPE FOR EXPANDING IN THE NEXT FEW YEARS.