KTB Logistics LLC. | Application Preview
KTB Logistics LLC is applying for government grants to cover start-up expenses critical for establishing its operations. The funding will go towards initial costs like office setup, including stationery, rent for two months, and computer equipment. Marketing efforts will involve developing brochures and a website. Legal consultation fees and insurance premiums for the first year are also included, along with licenses and permits necessary for business operations.
The company aims to manage operational cash flow until it breaks even and maintain reserves to mitigate financial risks. Long-term assets will consist of a new 18-wheeler and related equipment, purchased to ensure reliability and timely deliveries.
KTB Logistics plans to create brand awareness initially in Wisconsin, Illinois, and Indiana, expanding to other states later. It positions itself not as the lowest-cost option but as a provider with an excellent on-time delivery record. Marketing strategies include building a website, direct mail brochures, participating in business conferences, and public relations efforts.
The business will offer general freight transportation services, focusing on reliable pick-up and delivery of goods with features like online tracking and dedicated customer support. It aims to differentiate itself from larger competitors by fostering closer relationships with clients, thereby enhancing service quality.
KTB Logistics believes it can fill a gap in the logistics market by providing outstanding service and maintaining a strong emphasis on customer care, which is expected to foster loyalty and repeat business.
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General Information
Business Registration Number: 85-1998123
Location: S MILWAUKEE, WI, United States
Length of Operation: 0-1
Number of Employees:
Annual Gross Income:
Annual Gross Expense:
Open to Loans: YES
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Funding Usage
The start-up expenses include some of the basic set-up costs for the KTB Logistics office - stationery (business cards and letterhead), rent for the office and a large adjacent parking lot for two month's rent and one month's security at $5,000 per month, and computer equipment. Marketing expenses include brochures and website development (see website plan for more details). Other expenses include legal consultation fees to ensure that all precautions are taken to limit the risk of the business and to establish templates for client and partner agreements, insurance premiums for the first year of operation to cover liability associated with the service, the office, and the trucks, and licenses and permits for the business. These include Fuel Tax Reporting, USDOT numbers, 2290's, IRP tags, MC numbers, and IFTA decals. Cash required will be used to fund the months of operation before cash flow break even is achieved and to allow for adequate cash reserves to reduce the risk of running low on cash if targets are not met. Other current assets include office supplies, software for accounting, scheduling, and resource management and light equipment. Long-term assets include one new 18-wheelers, estimated at $50,000 (approximately $30,000 for the cab and $20,000 for the trailer). The business will purchase new in order to better ensure that deliveries are made on time and that the usual risks of aging equipment are avoided. An additional $25,000 is budgeted for long-term assets including repair equipment and tools which it is cost-effective to own in-house, satellite-tracking equipment for each truck, and office furniture. While some trucking businesses hire owner-operators of trucks, KTB Logistics will maintain greater control over the service it offers by owning the trucks, ensuring that it always lives up to its name.
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Business Plan
KTB Logistics will attempt to rapidly achieve awareness in Wisconsin, Illinois, and Indiana about its business in the first year, followed with awareness in Minnesota, Ohio, and Missouri in future years. It will seek to position itself not as the most inexpensive carrier, but as a carrier with the best on-time record coupled with advanced systems to help clients manage their logistics better. Smaller businesses may feel more comfortable working with a smaller carrier as they fear being lost in the shuffle by bigger carriers who also handle huge accounts. • Building a website with visibility on search engines and in databases of trucking companies (see Web plan) • Creating a compelling brochure of KTB Logistics services which will be distributed through direct mail, and kept in stock for networking events • Exhibiting at Midwest business service conferences, especially for sectors of the manufacturing industry • Advertisements in trade publications • Public relations efforts including press releases related to the business launch and its unique preferred client account management KTB Logistics will streamline distribution of goods for United States businesses, by solidifying a strong partnership in operating proficiently and dependably. KTB Logistics will use management of logistics, timeliness, accuracy of deliveries from destination to destination nationwide, and partnerships with distribution centers and warehousing businesses to achieve its goals. New Service The Company is prepared to introduce the following service to the market: General Freight Transportation: KTB Logistics will offer the following services for businesses in the United States: • Pick-up and delivery of goods with a minimum per-delivery weight of 20,000 lbs from and to locations in its geographic range by 18-wheeler trucks hauling dry van trailers • Both "less than a truck load" and "truck load" services • Online tracking information detailing the location of all GPS-tagged trucks and the status of deliveries, including expected arrival times for pick-up or delivery • Phone support for all customer questions, delivery changes, and scheduling • Preferred client services including online accounts, regular schedules of shipping, or linking of client order information directly to KTB Logistics's scheduling software to allow for seamless logistics To maintain its competitiveness in its core services, KTB Logistics will NOT offer: • Storage or warehousing of goods awaiting delivery (goods can remain in storage in trucks for short periods, but at relatively high cost to customers) • Packaging and crating • Flat bed hauling In the future, KTB Logistics will add the following services: • Temperature-controlled shipping to expand the range of customers Timely can appeal to Trucks are operated by qualified and well-trained drivers with spotless records. Drivers are safety trained and retested for knowledge of laws as they change. A dedicated suite of software and communication systems will allow for the logistical management mentioned above.
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Self Identified Competition
1. Sutton Transport 2. Performance Freight 3. R+L Carriers All of these companies are larger than mine so I have the advantage of byuilding a more intimate relation ship with the custor. Doing this will allow mw to better service their needs. Through building those relationships and relationships with brokers verses contract I van grow my business while providing the due professional care each customer deserves. First-rate service is intended to be the focus of the Company and a cornerstone of the brand's success. All clients will receive conscientious, one-on-one, timely service in all capacities, be they transactions, conflicts or complaints. This is expected to create a loyal brand following and return business.
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