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Business Plan

Business Plan for Altomi Logistics in Sri Lanka

Type of Documents : Business Plan

No of Words : 14000

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2012

Altomi Logistics

BUSINESS PLAN FOR ALTOMI LOGISTICS IN SRI LANKA

This is a sample Document

Email: [email protected], Phone: (UK) +44 203 3555 345 Website: http://www.globalassignmenthelp.com/

ACKNOWLEDGEMENT

I am extremely indebted for the support provided to me by my mentor, family and

friends. In this regard I would like to thank them for giving the required support, motivation

and guidance at each step of the work. Furthermore, I would also like to thank Apsara Hewage

and other local lectures that who helped and given full support to write this dissertation and to

achieve results.




EXECUTIVE SUMMARY

It is basically a business development model created with an intention to establish a new

business venture as an entrepreneur. Every business requires a detailed business proposal. The

business plan has been designed in order to offset the costs. It is thus an expression of the mission

and vision along with description with respect to operations and strategy to be followed. It thus

helps the top management to think about future prospects of business and make decision for the

same.

justification of business idea along with chosen aims and objectives for business. It is basically an

account about background of study. The second chapter deals with business concept and deals with

detailed business picture in terms of innovation or invention. Other than this mission, vision,

positioning and growth anticipation will also be studied. Next chapter deals with Feasibility aspect

related to organization and financing. This will help to formulate a new business model.

In the fourth section business model development will be done to capture essentials in order

to get clarity on various aspects like core strategy, resource requirements and core competencies

of business. In the business development plan there is a blueprint as to how the firm intends to

function. In the last section, viability aspect of proposed plan will be analyzed. This will help to

find out whether to go ahead with the proposed business plan or not.

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Table of Contents

CHAPTER- 1: INTRODUCTION .................................................................................................. 1

1.1 Justification for business idea .......................................................................................... 1

1.2 Chosen scenario................................................................................................................ 2

1.3 Aims and objectives of project ......................................................................................... 2

1.4 Outline of work ................................................................................................................ 2

CHAPTER 2: THE BUSINESS CONCEPT .................................................................................. 4

2.1 Description of the business idea ............................................................................................ 4

2.1.1. Target customers ....................................................................................................... 5

2.1.2. Services at offer ........................................................................................................ 5

2.1.3. Innovation in services ............................................................................................... 6

2.1.4. Business or ownership structure ............................................................................... 7

2.2 Vision .................................................................................................................................... 7

2.3 Mission .................................................................................................................................. 7

2.4 Marketing and Positioning .................................................................................................... 8

2.5 Scale and growth anticipation ............................................................................................... 8

2.6 Start-up summary .................................................................................................................. 9

CHAPTER- 3: FEASIBILITY ANALYSIS ................................................................................. 14

3.1 Primary market research................................................................................................. 14

3.2 Secondary market research ............................................................................................. 16

3.3 Feasibility ....................................................................................................................... 17

3.3.1 Product/service ............................................................................................................. 17

3.3.2 Industry and market ...................................................................................................... 18

3.3.3Organizational feasibility .............................................................................................. 21

CHAPTER 4: BUSINESS MODEL ............................................................................................. 28




4.1 How business venture fits in present scenario .................................................................... 28

4.2 SWOT Analysis of Altomi Logistics .................................................................................. 29

4.4 Core strategy ....................................................................................................................... 31

4.5 Value chain .......................................................................................................................... 32

4.6 The partnership network...................................................................................................... 33

4.7 Value deliverables to consumers ......................................................................................... 35

CHAPTER 5: BUSINESS PLAN ................................................................................................. 37

CHAPTER 6: VIABILITY ........................................................................................................... 40

References ..................................................................................................................................... 42

Appendix ....................................................................................................................................... 46


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List of figures Figure 1: Economic overview of Sri Lanka .................................................................................. 18

Figure 2 Export of Sri Lanka in 2009 ........................................................................................... 19

Figure 3 Porter five force analysis ................................................................................................ 34

List of Tables

Table 1 Estimation of Scale of Business for Altomi Logistics ....................................................... 9

Table 2 Equipment’s for Altomi Logistics ................................................................................... 11

Table 3 Start up cost structure ...................................................................................................... 11

Table 4 Human resource requirement ........................................................................................... 12

Table 5 Human resource of Altomi Logistics ............................................................................... 21

Table 6 Start-up Funding .............................................................................................................. 22

Table 7 General Assumptions ....................................................................................................... 24

Table 8 Cash flow for project ....................................................................................................... 24

Table 9 Projected P & L................................................................................................................ 25

Table 10 Projected balance sheet .................................................................................................. 26

Table 11 Payback period ............................................................................................................... 26

Table 12 SWOT Analysis ............................................................................................................. 29

Table 13 Value chain .................................................................................................................... 33




Abbreviation

LKR Lankan Rupees

USA United States of America

GDP Gross Domestic Product

IMF International Monetary Fund

VAT Value Added Taxes

EU European Union



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CHAPTER- 1: INTRODUCTION

The business development plan is basically designed to establish a new company as an

entrepreneur. In this regard, it is required that a detailed business proposal plan is made to analyze

the possibility in upcoming future. Hence, company plan can be defined as a proper outline of

vision undertaken by businessman followed by narration of operations and strategies that are to be

taken to complete the venture. Thus, creation of a detailed business plan helps to offset the cost

factors. It thus enables the owners and managers of company to give a thought about industry

broadly. It also helps to discuss the business objectives to employees and lays path for future

decision making (Bangs, 2002).

Moreover, it is beneficial if an entrepreneur accepts the making of business plan as there

is a requirement to take advices from professionals, consultants and others to achieve success. The

process helps in considering all the opportunities and risk that are associated with the business

proposal which provides a guideline for fruitful decision making. A good business suggestion also

aids in process of good investment making. Thus the present scheme has been drafted for Altomi

courier services who wish to start its operations in Sri Lanka (Tips to Start a Courier Service, n.d).

1.1 Justification for business idea

There is a company proposal to start a new business in the field of courier services in Sri

Lanka. Any courier service specializes in envelopes, small sized packages or even large shipments

of different shapes and sizes. Starting this service is not a difficult task and can be started in an

office with a telephone and means of transport. The present firm can provide a wide range of

services to its clients in form of messages, mail, packages etc. The main features that differentiate

courier from ordinary mail are on basis of speed, safety, tracking, signature, specialty and

customization of express service (Gilbert, 2004).

The chosen company is a new firm named as Altomi Logistics courier services that wishes

to start its operations in Sri Lanka. The idea of opening this agency came due to the fact that Sri-

Lanka is a port nation and deals in various kinds of export import services. Thus there are many

opportunities for overseas trade (Carter, n.d). According to recent reports there has been an

increase in export and import in Sri Lanka which has provided opportunities for courier related

services in form of logistics, express and mailing. The firm will work on national and international




level. The company will transport large packages via land, water and air connectivity (Sri Lanka’s

exports grow, imports increase and the trade gap widens, 2012).

1.2 Chosen scenario

Sri Lanka is basically an island country and is located to the north of Indian Ocean in south

entrepreneurial approach for the business. All the aspects related to business development and

operations for the establishment of new business venture will be analyzed deeply (Blackwell,

2011).This will help to provide a detailed business proposal by focusing on all the functional

aspects of new business proposal. After accomplishing this proposal following aims could be met:

To have a detailed description about Sri Lankan economy and current business scenario.

To analyze courier service network in the nation.

To identify appropriate methods for developing new business proposal.

To prepare a business plan for opening courier agency in Sri Lanka.

1.4 Outline of work

This project has been segregated into 6 chapters. These include Introduction, New Business

Concept, Feasibility, Business Model, Business Plan and finally Viability (McKeever, 2012).

Chapter one is of introductory chapter. Justification for the business idea, scenario chosen, aims

and objectives of the work and structure of the work will be defined. This chapter familiarizes



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reader with the background of study. Aims and objectives of the study will also be analyzed and a

thorough synopsis of the whole report’s structure will be identified.

The second chapter deals with business concept. Here a detailed picture of the business

concept in terms of innovation or invention will be explained. Other than this idea, mission, vision,

positioning and growth anticipation will be given.

Feasibility Analysis is the third chapter of the work and aims to examine the business

proposal’s viability from different perspectives. They include product/service, industry/market,

organizational and financial feasibility. This will help to draw out a new business model.

In the fourth section business model development will be done to capture essentials of new

business setup. The model will help to achieve clarity on various aspects like core strategy,

resource requirements, and core competencies of business. Other than this partnership network to

connect with key consumer group will be analyzed. This will be followed by assessing the values

that are to be delivered to customers.

The next section deals with business development plan which is derived from the business

model in order to provide a blueprint as to how the firm intends to function. It will explain the

current position of firm and future plans. It will also focus on the best route that can be taken by

firm followed by proposed business outcomes.

In the last section, viability aspect of proposed plan will be analyzed. This will ensure that

business plan is tested, assessed, designed, reviewed and planned for. This will help to find out

whether to go ahead with the proposed business plan or not.




CHAPTER 2: THE BUSINESS CONCEPT

Concept of business is an idea covering basic information like the product or

service specifications, the target customer profile along with a unique selling

proposition delivering competitive advantages to a company. Under business concept, an entirely

new product or services can be defined as an invention in the business line or simply

a novel approach to servicing with some innovations. Innovations can be in the form of novelty in

international courier service provider in Sri Lanka. This section will derive the innovative business

concept in this business line backed by proper secondary research and then articulate the vision

mission, business model, product/service etc for the proposed business concept. The target market,

service specifications or features and the unique business value chain, all will be articulated here

in this section. Definitions of strategies for implementing the business proposal, including pricing,

revenue, and distribution models etc. will also be a part of this (Gilbert, 2004).

2.1 Description of the business idea

The proposed business intends to establish an innovative courier service company. This

firm will be named as Altomi Logistics. The geographical area for business is chosen to be Sri-

Lanka. Sri-Lanka, being an island and major exporter of different products is found to be lucrative

destination for opening up a courier service set up. Altomi Logistics will be having its nodal office

at Colombo, the country capital, which will make the process both technical and managerial quite

easy (Kelegama, 2004). This will lay an opportunity to analyze the overall market and economic

scenario that is present in Sri Lanka. It will also provide a guideline about the cost structure, staff

hiring to be made in the new firm. There will be exposure to economic, social, political and legal



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processes that may affect the plan in long run. The features and specifications of the Altomi

Logistics’ target customers and services are defined as below:

2.1.1. Target customers

By definition, market can be segregated into different heterogeneous groups of customer

with homogeneous needs. Here, heterogeneity exists between different groups but inside the group,

the needs of different customers will be same, which will be termed as homogeneity. Identifying

the right customer base and delivering the right service largely depends on the definition of the

services and the target market. Altomi Logistics is going to offer its services to the business

customers. So the target market is the Sri Lankan business entities. In Sri-Lanka, four major

industries are currently in lime light. Tea Exporting, Apparel and textile industry, service industry

and gems and ornament industry are included in this list (Carter, n.d). Among these, Altomi

Logistics is going to concentrate over the all four for both domestic as well as overseas services

for the small players of the respective industries.

2.1.2. Services at offer

Altomi Logistics is targeting all the four key industries in Sri Lanka with different sort of

services for different purposes. The service portfolio will comprise of the following:

Supply chain solution: Under this service, Altomi Logistics will look for business contracts

with different corporate to assist them in domestic as well as international transactions. This

service will aim at offering a flawless supply chain function in the customer organization. Under

this both the physical delivery as well as legal formalities will be taken care by Altomi Logistics

on behalf of the customer. Supply chain solution division will offer an integrated service to

businesses across different industries (Bowersox, 2011). All formats of services including flexible

point-to-point distribution, complex end-to-end integrated logistics or supply chain management

services, Altomi Logistic will offer with great effectiveness and reliability to match the customer

requisites. By solution to critical operational constraints, much better working capital, and

reforming business processes, Altomi Logistics will deliver sustainable competitive advantages.

The inbound process in case of Altomi Logistics will provide for the external procurement

processes that occur when goods are received. On the other hand, the outbound process will take

care of all the necessary activities that are required to prepare and send goods to their destination.




Both the processes in case of Altomi Logistics will cover the execution of business and provide a

complete as well as an integrated solution to monitor the flow of goods.

E-Commerce Solution: E-commerce is the most popular among the end users of the

products and services these days. It has changed the entire game of the way businesses trade,

package and ship the consumer goods. As a result, more pressure has been exerted to assure the

fulfillment of customer orders. The only small link in the process is the last-mile logistics. This

aids in brand value creation for the businesses. Altomi Logistics is going to present a speedy, last

mile home-delivery solution to complement the e-business of different players in Sri-Lanka. This

would be largely done with a specialized division, nominated staff and a nationwide network.

Non-vessel Operator Container Carrier: Under this, services will be offered such as

freight forwarding etc to importers and exporters along with providing them total logistic solutions.

Express Distribution: Altomi Logistics, with an intrinsic network will have a reach of all

the major cities in Sri Lanka. Using a vast fleet of vehicles and assured space, Altomi Logistics

will ensure the shipments delivery in the right time at the right place.

2.1.3. Innovation in services

By innovation, meaning is the development of novel value for the customer by meeting

new requirements, in articulated needs or the existing customer base of courier services and market

needs in a completely new form. Innovation can be incorporated in the services industry through

different or more effective processes, services, technologies as readily available in markets.



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Innovation is a different from invention. Innovation means using a better and novel idea whereas

invention describes creation of the new idea or method. Here, Altomi Logistics aims to deliver

the already popular and existing services in logistics market in an innovative way. Here, by

innovation, meaning is the process of enquiry and response along with the online placement of all

the orders, which will reduce the absolution of time and work in accounts of both the customer

and the Altomi Logistics employees. Entire process at Altomi Logistics will be online including

online tracking of consignment, enquiry placement, quotation placing etc.

2.1.4. Business or ownership structure

Any business can be incorporated under many organizational structures. There is a wide

range for choice. Each structure holds specific advantages and disadvantages, which need to be

considered before finalizing the ownership structure. Before the final incorporation of the business,

consulting must be done with an attorney, accountant, financial advisor, banker, or other business

or legal advisors so as to determine the most suitable structure for the proposed business. Here, as

an entrepreneur, the best suitable ownership structure will be of a Private Company, whose

ownership is private. It can issue stock by private placement but, these shares will not be traded

on public exchanges. Such shares are less liquid and difficult to determine values (Gilbert, 2004).

2.2 Vision

The vision statement of Altomi Logistics is as follows:

“Altomi Logistics intends to become the first choice for logistics services among the business as

well as individual customers of the domestic and international consignment delivery, providing

dependable, reliable and honourable international solutions for Air and Sea logistics

internationally.”

2.3 Mission

Mission of Altomi Logistics is to offer innovative and remarkable logistic services to the

business houses as well as e-commerce customers. Business clients will be served by the large size

business agreements both domestic and international trades whereas the individual customers will

be served domestically. The offered services need to be met the standards of superiority of trade

agreement, safe and on time delivery combining both creative and customary styles of logistic

services (Agrawal, 2003). Providing the customers an impeccable service is one of the aims,

Altomi Logistics strives for. A friendly, supportive and gratifying environment will be offered to




the employees so as they feel encouraged for long-term with pleasing, growth oriented work

environment. Altomi Logistics aims to be a benevolent member of the Sri Lankan community and

improve the quality of logistics service and life in the geographical region.

2.4 Marketing and Positioning

Differences between the performances of companies confirm with the central principle of

marketing strategy i.e. to be successful over the long term, a firm’s products and services need to

be well positioned in the marketplace (Brooksbank, 1990). Through positioning, marketers try to

provide an identity to the product or services to retain that in the minds of their target customer

population. Positioning is quite a crucial aspect of any business specifically for the service

industry. It matters a lot for as it is going to decide, how the customers are going to perceive it

rapid expansion of international trade, need for an efficient supply chain solution arises among the

businesses that are involved in export of their goods. Thus a demand for the one stop solution

providers elevated over time. In line to this, the logistics and freight forwarding industry of Sri

Lanka have taken a speed (GDP poised for 7.2% growth next year, 2012).

According to Amal Kumarage (chairman of the National Transport Commission) the

estimated logistics and freight forwarding industry is earning a 200billion rupees annually and

have turned out to be one of the Sri Lankan economy's biggest sectors (Lanka Business Online,

2009). Also, it has been estimated to grow at a similar rate of the GDP growth i.e. 7.2% annual.

On the basis of this estimate, the operating scale and growth of the business of Altomi Logistics



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will be derived. The expected scale of the Altomi Logistics can be derived as shown in the below

table, with an assumption to have a ½% market share initially as a result of innovative marketing

and advertising activities:

Table 1 Estimation of Scale of Business for Altomi Logistics

Year Growth factor (7.2% per

year)

Expected Industry

Business (Billion Sri

Lankan Rupees)

Estimated customers

for Altomi Logistics

(Billion Sri Lankan

Rupees)

2013 1.072 214.4 1.072

2014 1.149 229.837 1.149

2015 1.232 246.385 1.232

2016 1.321 264.125 1.321

2017 1.416 283.142 1.416

2018 1.518 303.528 1.518

2019 1.627 325.382 1.627

2020 1.744 348.809 1.744

Source: (GDP poised for 7.2% growth next year, 2012)

Formula used for calculating the estimated value of tourists coming to Mongolia is as

written below:

ℎ��

= ∗ ℎ ℎ �� ℎ� ��

2.6 Start-up summary

Altomi Logistics needs to specialize in organizing, storing, transporting and delivering

orders on time and specified place to the clients. Today, majority of the manufacturing companies

outsource logistics function in order to decrease the associated costs and increase the efficiency of

respective supply chain process. To start it, the first step is to enter into this exciting industry. In




Sri Lanka, logistics business is quite lucrative. For setting up it, Altomi Logistics has to follow

the below mentioned process:

Settle on the logistics services on offer for the client. A range of specialized services can

be in the portfolio of any logistics firm, including storage, trucking, shipping by sea, air

transportation, shipping through the mail and integrated supply chain technology management etc.

Looking towards the requirements of the market, Altomi Logistics is going to offer online and

one step solution to all the service seekers in the field of logistics and transportation. Services

under the Altomi Logistics’ portfolio are as listed below:

Supply chain solution

c. Submit all the above mentioned documents along with the registration fee at the

Sheriff counter. Registration fees in total amounts to be Rs 12,880.00 covering the

VAT charges. segregation of this fee is as under:

i. Form 1 - Rs. 10000

ii. Form 18 - Rs. 500

iii. Form 19 – 500

iv. Articles of Association - Rs 500

v. VAT charges – 12% (1380)



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d. After registration, the company will need to start functioning within 30 working

days of its incorporation under this Act.

Manage to obtain the start-up capital. In any logistics company, generally long term funds

and credits are required for vehicles, facilities, technology and other equipment installation.

This makes it necessary to gauge the concrete amount of finance and the source of finance

before planning for execution of a business plan. For starting the functions of Altomi

Logistics, following equipment’s and articles will be required:

Table 2 Equipment’s for Altomi Logistics

Article name Quantity

Computer system 4

Supply chain software and E-commerce instrumentation

software

1

Transportation Vehicles 8

Stationary and administrative apparatus -

Connecting media for each transporting unit 8

Miscellaneous equipments such as on-loading and offloading

machinery

1

Warehouse fixtures -

Office furniture -

(Source: Boroade, 2011)

After listing the required instruments and funds, all these need to be procured either by

purchase or leasing or hire purchase. The warehouse floor will also be finalized.

Start up cost structure for Altomi Logistics will be as under:

Table 3 Start up cost structure

S. No.

Description Quantity Cost (Sri Lankan Rupees)

1 Ware house floor rent (for 4 months) 1 800,000

2 Office rent (for 4 months) 1 240,000

3 Computer systems 4 240,000

4 Transportation vehicles (4 Truck and 4 tempos) 8 1800000




5 Supply chain management software 1 100000

6 Logistics management software 1 120000 7 On-loading and Off-loading equipments 1 set 220000

8 Warehouse fixture - 120,000

9 Office furniture - 150,000

10 Stationary and other items - 100,000

11 Connecting media instruments 8 sets 80,000

12 Other - 300,000

13 Salary (4 month) (average salary in Sri Lanka is 36,000 per person)

18 persons

2,592,000

14 Company registration fee - 12,880

Further, after setting up the operations, implementation can into the lime light. First, the

supply-chain-management software and logistics-management software should be installed so as

to track the items and vehicles as well as the tracking media installation for satellite tracking

facility.

The human resource requirement for Altomi Logistics is presented below. For this purpose

well versed staffs with the requisite skill set and expertise is a must.

Table 4 Human resource requirement

Staff name Number of persons required

Manager (owner) 1



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Logistic head 1

Marketing professionals 3

Operator 4

Drivers 8

Cleaning staff 2

Total 18 plus the owner

(Source: Piley., n.d)

Thus, the start up capital required for the business set up is nearly LKR 7,000,000. This

fund will be raised from the market through different sources of finance available in the market.

The owner’s capital for the business will be of LKR 3,000,000. Rest finance will come from the

bank loans, hire purchase and leasing.




CHAPTER- 3: FEASIBILITY ANALYSIS

Setting up a business is the result of aspiration of a person to change his or her business

idea into reality. This is possible by careful examination of the prevailing level of threats and

opportunities. But generation of idea is not enough as it is important to make sure if it is feasible

from technical, economic, legal and financial perspective. So after the idea generation and initial

test, it is required to carry out an in depth analysis of issue related to feasibility so that time, money

and energies are exerted in right direction (Evaluating the Feasibility of Business Opportunities,

2009).

successful analysis of business venture. Primary analysis involves research conduction via use of

interviews, surveys and observations. As it is a known fact that for starting any given business

considerable funding and supplementary resources will be a must. Along with this, there is also a

requirement of time and ample manpower. Thus it is a pre requisite to conduct a detailed research

before setting the business plan (George and Bock, 2012).

3.1 Primary market research

Scientific methods are the basis of primary research, which has been developed by John

Stuart Mill in the mid-19 thcentury and discussed this in the book “Philosophy of the Scientific

Methods”. Three methods are available for conducting a primary research, known as the

observation method, interview method and survey method (Joseph and Covelo, 2006).

Here an interview method has to be employed for primary data collection. An online

interview method is adopted for collection of responses from the industry experts, whereas

questionnaire interview method is used for data collection from the business representatives from

different industries associated with the commercial departments of the respective firms. For the



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expert interview, five industry experts are to be selected as per the availability. As far as the

industry representatives are concerned, they are approached in personally and through a well-

structured interview, their opinions will be collected. A sample of 10 respondents from each

industry has been collected and analyzed for deriving the results. Responses of the participants are

as follows:

1. Expert opinion interviews:

a. Sri Lankan Logistics and freight forwarding industry has a bright future a head

as the current economic conditions are supporting growth of different

industries. All the experts have the same opinion and have suggested making a

doubtless foray into the industry.

b. The most fascinating features according to the experts of this industry are its

long term sustainability, lucrative growth in the near future; improving cross

country trades in the country makes this business line much preferred for a

veteran entrepreneur. For an entrepreneur this is one among the most beautiful

venue to park the efforts and financing.

c. DHL have recently made entry in the country with its logistics services and

Gati, an Indian service provider is also there among the recent new comers in

the industry. According to the experts, their performance has been significantly

good.

d. Licensing and fund raising are the two main entry barriers for the new entrants.

Some of the expert has also advocated that the existing competition is a serious

short coming for the new entrants. A new establishment in the industry has to

cop-up with this situation.

e. Industry is largely regulated by the Industry union and the state ministry

concerning the transportation and freight forwarding businesses.

f. As per the opinions of different industry experts, Franchising is the best way to

make an entry in the market.

g. Although the sector has shown a significant growth over time, still there exist a

gap between the services and demand. New technological enhancements for the

order placing and just in time delivery systems can shorten this gap.

2. Interview response of Individuals from commercial back ground:




a. Majority of respondent were from the apparel and textile industry and some

others from the tea exporting houses.

b. 80% of the representatives from the apparel and textile industry were out

sourcing the supply chain services. No specific software is used by these firms.

c. As per the responses, different local and international brands are currently

3.2 Secondary market research

Secondary market research is defined as the data that exists already and has been collected

by some other researcher for his or her research purpose. It involves evaluation and assessment of

existing data sources. It makes use of sources of information in form of government agencies,

media, labor unions, chambers of commerce, trade and industry and many others. Secondary

sources of information in present case are as follows:

Commercial sources – These include sources in form of information obtained via study of

media, trade and industry sources etc.

Online sources – In present case online articles, books and journal articles presented by

different authors have been used.

Public sources – This involve study of information presented by governmental agencies,

chamber of commerce and the labour unions.



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3.3 Feasibility

The term feasibility can be defined as a detailed analysis and evaluation of proposed

business plan to determine if the given idea will fare well in the market on basis of profitability

and market share. This helps to highlight the existence of market for proposed service and the

investments that may be required to move forward (Nykiel, 2007). The analysis helps to answer

questions related to financial and technical aspects in order to convert business idea into reality. It

addresses issues like where and how the business will operate and what are the chances for success.

It thus serves as a valuable tool to develop a winning idea. Under present business plan various

aspects of feasibility in terms of present market attractiveness, product or service, organization and

financial aspect will be analyzed (Evaluating the Feasibility of Business Opportunities, 2009).

3.3.1 Product/service

The most important thing in feasibility analysis is to evaluate the viability of business idea

in terms of proposed product or service that the firm wishes to offer to its clients. In this context,

various questions should be answered to get a refined business idea.

Is the business plan in tune with specified needs of market place in Sri Lanka?

Is the present business concept profitable?

Does the business idea have the capacity to face prevailing competition in market?

The given questions can be answered by observations via primary research. It helps to

provide a brief overview about the competitive scenario and presence of opportunities in the

courier service industry (Tips to Start a Courier Service, n.d).

The primary research has been conducted on industry experts of courier services and target

customer representatives to get an overview about feasibility of business plan. According to

primary research that has been performed on basis of interview, it is clear that there is scope for

the start up of Altomi Logistics in spite of the presence of competitors. According to the primary

research observations, the business concept seems to be prima facie feasible. Also, the future

prospects of growth are bright in the industry for the proposed business concept.




3.3.2 Industry and market

Economy attractiveness

Sri Lankan economy has shown signs of peaceful domestic environment; favorable policies

by government and improved investor confidence have helped to increase GDP growth rate to

8.3%. According to recent statistics, services sector remains the major contributor of national

markets for the export oriented goods are USA, United Kingdom, India and Italy. As Altomi

courier services deals with European nations and United States thus it is important to have a brief

overview about present trade relations with both countries (Sri Lanka Trade, Exports and Imports,

2010).

The trade relations between European Union and Sri Lanka began in 1962 when embassy

of Sri Lanka was set up in Brussels. To strengthen the relationship between two nations ‘The

European Chamber of Commerce Sri Lanka’ was founded in year 1996 with an aim to strengthen

and promote business relations between two nations. This also helped to increase trade with third



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world nations. Since then EU is also regarded as Sri Lanka’s first trade partner. The flow of

business between two nations in 2009 was Euro 2.9 billion. The trade surplus for Sri Lanka also

came out to be Euro 1.1 million. Exports grew by 24.4% (US $ 3576 million) in 2011 which are

in form of garments, gems and jewelry, unmanufactured tobacco, leather, travel goods and

footwear. This reflects the importance of courier services between two nations (Sri Lanka - EU

Relations, n.d).

Figure 2 Export of Sri Lanka in 2009

(Source: IMF: Sri Lanka’s exports/GDP falling for years, 2011)

On the other hand, United States remains Sri Lanka’s number one export market and

accounts for nearly 1/3 of the nation’s exports. The major ones from Sri Lanka are in form of

apparels and textile which contribute to around 36% of total in 2009. On the basis of statistics,

value of apparel export from Sri Lanka to US recorded an increase of 2% to 1682.43 million dollar

in year 2006 as compared to 2005 (Trade relations between Sri Lanka and the U.S., 2010). In order

to promote trade, The Trade and Investment Framework Agreement (TIFA) have been signed

between two nations to provide an ideal platform to promote economic growth and maintain trade

relations that are of mutual interest to both the nations (GDP poised for 7.2% growth next year,

2012).

The major sources of connectivity between two nations are through airways. The nation is

on a verge of becoming second international airport in 2013 in a city named Hambantota. It will




build a runway to cater to needs of nonstop flights to/from Europe. Sri Lankan airlines links

Colombo nonstop with Frankfurt, London and Paris but nonstop service to Europe is still a matter

of concern. It is expected that this issue will be solved by the entry of Hambantota international

airport in 2013 (Getting there & away, n.d).

Market and industry attractiveness

The consumers in present industry are in form of export oriented businesses mainly in form

of apparel and textile industry. Textiles and apparel are key exporters in Sri Lanka and account for

over 43% of the country’s total exports and more than 56% of industrial exports. There are 900

industries that deal in apparel and textile segment. Many industries in the area of tea, gems and

jewelry are also involved in export services. Buying behavior is influenced by superior quality,

timely delivery, competitive pricing, distribution network and promotional techniques (Gilbert,

2004). The brand loyalty of consumers is this industry is reflected from innovative packaging that

promotes ease and enhances its functionality. This will be in form of thermo from film to ensure

durability followed by proper sealing along with labels and sticker that bear the shipper and

receiver’s address. In order to induce and sustain purchases by consumers the firms should focus

on introducing cost effective measures and pay attention to innovative packaging along with

operational efficiency so that it increases satisfaction of clients and also drives sales. The couriers



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companies also need to focus on have faster service, accuracy together with an improved ability

to their customers for tracking packages. They should also focus on safety aspect of the export

consignment to increase sales (Tips to Start a Courier Service, n.d).

3.3.3 Organizational feasibility

The main objective behind organizational feasibility analysis is to determine if the firm has

got sufficient skills, expertise and resources to ensure successful market entry. This step basically

makes use of analyzing the non-financial factors that are important for current business. In this

scenario, it is important to consider issues like management competence, presence of skills set;

business system; sufficiency of resources; risk appetite, sustained energy and motivation to

succeed. The managerial competence needs to be evaluated on basis of requisite skill set, passion

and an expertise to start the new venture. It is also essential to analyze the presence of non-financial

resources in form of availability of technical expertise, possible of government support, workforce

quality, familiarity with key suppliers, contacts with business customers, competitor strategy etc.

It is important to focus on presence of resource sufficiency particularly nonfinancial resources

(Baron and Shane, 2008). The human resource requirement for present firm is presented below.

For this purpose well versed staffs with the requisite skill is a must.

Table 5 Human resource of Altomi Logistics

Staff name Number of persons required

Manager 1

Logistic head 1

Marketing professionals 3

Operator 4

Drivers 8

Cleaning staff 2

Founder of the company i.e. Mr. A, and two other i.e. Mr. X and Mr.Y are the ones that

represent Altomi Logistics. As the firm is starting for the first time therefore a good start up team

will play a key role in overall development of firm. It will depend on managerial experience and

core competencies of company. Management responsibilities will be focused on three main areas

i.e. administration, finance and marketing followed by logistics section. If future growth of Altomi




Logistics takes place then additional consultant assistance may be required to solve issues related

to sales, logistics and marketing issues.

In such a scenario, the firm should have expertise staffs who is fluent in local language i.e.

Sinhala as it is the major language of documentation. Proficiency in English language is also very

essential. Various kinds of resources are required that are classified into human, physical and

financial resources.

3.3.4 Financial feasibility

Financial feasibility analysis is a very important tool to find out the ability of proposal to

seek fund. This step is among the last and most important step for feasibility analysis. This gives

a glimpse of financial merits for the proposed business (Kumar, 2008). The initial capital

requirement will be up to 6400000 to 7400000 Sri Lankan rupees. Profitability depends on the

nature of growth.

Table 6 Start-up Funding

Start-up Funds Funds

Start-up Expenses to Fund 4044880

Start-up Assets to Fund 2830000

Total Funding Required 6874880



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Assets

Non-cash Assets from Start-up 2830000

Cash Requirements from Start-up 4,032,000

Additional Cash Raised 125120

Cash Balance on Starting Date 12,880

Total Assets 7000000

Liabilities and Capital

Liabilities

Current Borrowing 1440000

Long-term Liabilities 2560000

Accounts Payable (Outstanding Bills) -

Other Current Liabilities (interest-free) -

Total Liabilities 4000000

Capital

Owner Equity 3000000

Total Capital 3000000

Total Capital and Liabilities 7000000

Total Funding

Key Assumptions

Every financial plan is dependent on some important assumptions which are mentioned in

table below.

Sri Lanka is a high growth economy with good chances for export and import. It has shown

a GDP rate of 6.5 percent in the year 2012 and is expected to increase by 7.2 percent in the

year 2013 (GDP poised for 7.2% growth next year, 2012).

It is assumed that the opening of Altomi Logistics will take place in mid of March 2013.

No unforeseen changes are anticipated with respect to popularity of Altomi Logistics.




There is complete access to both investment and financial sources with certainty.

Gross profit margin of Logistics industry of Sri Lanka is 30%.

Table 7 General Assumptions

General Assumptions

2013 2014 2015 2016 2017

Current Interest Rate 18% 18% 18% 18% 18%

TOTAL CASH INFLOW 1.14 1.21 1.29 1.38 1.47

CASH OUTFLOWS Operating expenses 0.54 0.57 0.62 0.66 0.71

Premises (rent, rates) 0.03 0.03 0.03 0.03 0.03

Wages and salaries 0.08 0.08 0.09 0.09 0.10

General expenses 0.00 0.00 0.00 0.00 0.00

Interest and loan repayments 0.01 0.01 0.01 0.01 0.01

Capital expenditure 0.03 0.03 0.03 0.03 0.03

Corporation Tax 0.12 0.13 0.14 0.15 0.16



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TOTAL CASH OUTFLOWS 0.80 0.85 0.91 0.97 1.04

Net cash flow 0.34 0.36 0.38 0.40 0.43

Projected Profit and Loss

This is also called as profit and loss statement, income statement, or income expense

statement. It is that statement which provides a brief summary about sales, cost of goods, and

expenses incurred in the business during specified period of time which is a quarter or year. It

helps to provide information about business ability to increase profit by improving over revenue

and reducing costs (Titley and Moynihan, 2001).

It is usually prepared by following a conservative approach and projections are based on

past performance of some courier and logistics firm running in Sri Lanka. By innovative

approaches, service positioning and development of good customer relationship is required to

achieve popularity which results in increased sales.

Projected P & L for Altomi Logistics

Table 9 Projected P & L

(4) PROFIT AND LOSS FORECAST

In billion LKR

Year 2013 2014 2015 2016 2017

Revenue 1.07 1.15 1.23 1.32 1.42

operating expenses 0.54 0.57 0.62 0.66 0.71

Premises (rent, rates) 0.03 0.03 0.03 0.03 0.03

Wages and salaries 0.08 0.08 0.09 0.09 0.10

General expenses 0.00 0.00 0.00 0.00 0.00

Interest and bank charges payable 0.01 0.01 0.01 0.01 0.01

Total expenses 0.66 0.70 0.75 0.80 0.85

Profit before tax 0.41 0.45 0.49 0.52 0.57

Tax @28% 0.12 0.13 0.14 0.15 0.16

Profit after tax 0.30 0.32 0.35 0.38 0.41

Projected Balance Sheet




Table 10 Projected balance sheet

Assets 2013 2014 2015 2016 2017

Non-cash Assets 2830000 2547000 2292300 2063070 1856763

Cash Requirements for operations 4,032,00

0

4,435,20

0

4,878,72

0

5,366,59

2

5,903,25

1

Additional Cash 138000 138000 138000 138000 138000

Total Assets 7000000 7120200 7309020 7567662 7898014

Pay Back Period

It is a technique of financial evaluation which reflects the time period that is required to

complete any given project in order to pay back the initial investment. It can also be called as a

non-discounted technique (Powell and Baker, 2009). Here in our proposed plan, 6874880 LKR is

required as the start-up fund. This amount will be recovered via net profit of business. Calculation

of the pay-back period for the logistics firm is shown in the below table:

Table 11 Payback period

Year Net profit Cumulative net profit

2013 0.298212 0.298212

2014 0.322833 0.621045

2015 0.349361 0.970406



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From the above table it is shown that repayment of initial investment will begin in the 2 nd

year of business after it commences operation. The exact pay-back period will be calculated on

basis of formula;

Payback period = Initial investment/ Periodic cash flow

2+ (0.6874880-0.621045)/0.349361= 2.1 years

On basis of formula, the payback period is found out to be 2 years and 1 month. This implies that

it is relatively low. It is an indicator of attractiveness of the given business venture among

investors.




CHAPTER 4: BUSINESS MODEL

Business model for any company is designed to find out the factors that influence business

process of any firm. It helps to implement business processes to add value to clients and users and

give assurance to stakeholders for profitability and stability of capital (Neubauer, 2011). It helps

to answer questions like;

What will be the effect of external environment on happenings of business?

What should be the best response of the business to the probable changes?

Altomi Logistics is starting from scratch and hence it is required that things must be

designed and managed according to requirement of owner. There may be difficulties with respect

to brand establishment and positioning in market. The present industry in Sri Lanka is dominated

by presence of competitors like Blue Dart, DHL courier services etc. Therefore entry of a new firm

in the present industry is not an easy one. There is a requirement to have a thorough knowledge

and understanding about competitive business scenario followed by the requirements of

consumers. There is an obligation to carry out an extensive market research to make a successful

entry in this field in order to assess the acceptability of the business model by targeted business

clients. According to many reports most of the courier companies find it difficult to survive thereby

resulting in closure of businesses. Hence enough time must be taken in order to increase chances

for success (Trade relations between Sri Lanka and the U.S., 2010).



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4.2 SWOT Analysis of Altomi Logistics

It is very essential to focus on specific strengths, weaknesses along with external

opportunities and threats from the outer circumstances so as to achieve competitive advantage.

SWOT analysis of Altomi Logistics is given below:

Table 12 SWOT Analysis

Strengths

Innovative business services.

Proper market research and

planning.

Viable in financial terms.

Increase in Sri Lankan

exports.

Sound and peaceful domestic

environment.

Sound governmental policies.

Weaknesses

Highly dependent of the acceptability of

the company among the customers.

High dependence on the growth of export

in the country.

Sensitive to the government laws and

regulations in form of tariff duties.

Lack of nonstop air connectivity to Europe.

Threats

Competition from global

firms like Blue Dart and DHL

courier services.

Substitute products like

governmental postal services

and telecommunication.

Require heavy investment in

technology.

Issues related to licensing and

permit.

Opportunities

Innovative packaging options in form of

thermoform film so as to provide durability

to the contents. All packages are sealed

with clear writing of shipper and receiver

address on labels and sticker.

Timely delivery of service to ensure an

edge over competitor firms like GATI who

have a well established base.

Safety of package.

Proper access to suppliers.

Good networking with prospective clients.




4.3 Business model

Business model for Altomi Logistics will focus on the basic principles in order to capture,

deliver and create value to clients in form of economic, social and financial terms. The construction

of a well-defined model is thus a part of business strategy. The process helps to describe key

requirements of business and also helps to explore on the future possibilities (Hill and Jones, 2009).

The business model for Altomi Logistics is given below:

safety of

package

- Provision of

growth

opportunities

to the

employees

- Financial

sources

comes from

the owner or

through short-

term loans

- Human

resource and

other

channels:

Online

banking, use

of smart

phones and

pre paid cards.

Distribution

channels:

Provider of



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operational

requirements

will be

obtained from

Sri Lanka.

- Setting up an

equality

policy.

courier

service,

representative

of courier

agency and

consumers

those who

wish to export

the goods.

Communicati

on channels:

Use of mobile

phone and

internet.

Competitive advantage

-Timely delivery of package at lowest prices

-Innovative packaging options.

-Safety of consignment.

-Customization of services

- Maintaining standards in superiority.

Revenue streams and cash flow

-Through logistics and operations

Cost and cost budgets

-Fixed costs will be covered by Altomi

logistics through operations.

-Marginal costs covered by revenue schemes.

4.4 Core strategy

For survival and prosperity of any business in a particular industry the companies must be

able to set a core strategy to attain differentiation. They must deliver customer value for money

services and also endure in competition (George and Bock, 2012).

According to mission Altomi Logistics, is to offer innovative logistics services to clients

and meet standards of superiority, safety, timely delivery and customization of services. There is

enough scope in market and in the area of online services. Hence the firm needs to design a core

strategy to achieve competitive advantage. This can be achieved by creating difference between

value offered to clients and cost of creating the value in comparison to rival firms. This can be




achieved by formulating differentiation and cost advantage strategy. For differentiation, superior

services must be provided to clients and cost advantage can be attained via economies of scale.

As the present firm i.e. Altomi Logistics is a completely new start up hence achieving cost



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Table 13 Value chain

4.6 The partnership network

Whenever any new venture starts its operations then it usually does not have access to

resource base in order to perform all key business activities. In such a scenario, a proficient

partnership base is required so as to make new businesses work.

The partnerships are the key alliances which are necessary to start a business. In present

Altomi Logistics include partners, suppliers, channel members, stakeholders, shareholders, trade

alliances, professional bodies and governmental agencies (Culpan, 2002). The suppliers of Altomi

Logistics will be in form of local vendors that would provide packaging items and other tools and

techniques to help in process of offloading and on loading of export consignments. Stakeholders

will be human resource staff of firm, retailers, distributors, suppliers etc. The clients in form of

apparel, textile, gems and tea business unit will be major customers along with the local




community of Colombo city that are affected by the operations of firm indirectly. The main

stakeholders are the governmental authority of Sri Lanka mainly the customs and regulatory

agencies. They try to put a better control on overall operations in order to increase revenue and

enhance transparency and cost of operation (History, n.d).

Other than this, the local port authorities, shipping agents, airlines and freight forwarders

are involved in export of courier consignment via waterways and airways. The bankers are the

major source of short and long term loan providers. There are a number of local and foreign banks

that can provide loans to Altomi Logistics. These include Bank of Ceylon, Peoples bank,

Commercial Bank of Ceylon and foreign players like HSBC, Standard Chartered, ICICI bank etc.



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In this scenario it is important to have a look on Porter’s five force analysis for present

firm. Bargaining power of suppliers for Altomi Logistics is characterized by the fact that it is easier

to switch suppliers due to fewer bargains. This can be beneficial for the logistics firm in long run.

Customers have a huge bargaining power and expect provision of facilities like innovative

packaging and proper sealing of containments, safety and timely delivery of consignments. They

also expect low pricing due to presence of global competitors in form of DHL, Fed Express and

other local rivals. But this may get positive for Altomi Logistics in long term future as the large

industrial set up allows for multiple firms to flourish without allowing the rival partners to steal

market share. Substitutes for Altomi Logistics are in form of local postal services and advent of

telecommunication. This means that customers will find it difficult to have access to other

substitutes in order to fulfill the needs. This can play a positive part for present firm (Abrahms,

2003).

4.7 Value deliverables to consumers

The present clientele of Altomi Logistics are in form of business ventures belonging to

textile, apparel, gems, ornaments and tea industry. Thus the customers who approach the newly

established firm expect a series of superior value propositions that must be delivered to business

units (Hardy, 2005). These are in form of functional, emotional, competitive, pricing, ethical and

legal aspects. All of them must be managed by Logistics firm at the interface of clients. This would

help to build trust worthiness and loyalty with future customers. Thus the value proposition acts

as a key ingredient to success of upcoming business venture. With the help of given value

proposition, Altomi Logistics can provide a fulfilling client experience and also ensure that value

can be and will be delivered on a consistent basis (Tips to Start a Courier Service, n.d).

Functional proposition – This aspect for Altomi Logistics is related to performance and

quality of services. In present case, there should be quick and timely delivery of export

packages. Safety aspect is very essential in present scenario so as to garner trust and loyalty

of clients. Introduction of innovative methods of packaging that are environmental friendly

and provide an added feature of safety. This are in form of thermo form films to ensure

durability followed by adequate sealing. The labels and stickers can also be attached to

reflect the address of sender and bearer (Ulrich and Brockbank, 2005).

Emotional proposition – This segment includes the brand identity that is communicated to

customers via services. In present scenario, Altomi logistics can focus on maintaining its




brand identity in form of personal commitment by adapting the services according to needs

of consumers and provide ease in processes. The firm can also focus on providing proactive

solutions to services and keep up with promises. It can make the supply chain more efficient

and reliable by offering flexibility according to demand (Hill and Jones, 2009).

Competitive proposition – In order to have a competitive edge over rival firms, Altomi

logistics should offer the lowest possible rates in order to beat the competition. It must also

focus on providing the best online services to clients and innovative packaging solutions

so as to get the best output.



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CHAPTER 5: BUSINESS PLAN

The current business set up is headed by the decision to have a rewarding entrepreneurial

career and recognition for a promising business idea. This is backed by careful investigation of the

presence of entrepreneurial opportunities in the selected market. In context of market and industry

attractiveness, both are found to be profitable. The logistics sector of Sri Lankan economy is

earning 200 billion every year. It is estimated to grow at 7.2% on an annual basis. This will provide

enough room for survival, growth and profitability of newly proposed firm in Sri Lanka (GDP

poised for 7.2% growth next year, 2012). Altomi Logistics Company is located in Colombo. It

wishes to make a mark in the area of courier services providers in Sri Lanka. A large number of

activities are also segregated in form of arrangement of funds, obtaining licenses for courier

services, equipments and transportation vehicles, finalization of office and warehouse space,

interiors, fixtures and other installations. This will be followed by organizing a complete plan to

ensure successful launch of business followed by inauguration. All these activities are to be

completed in two months time as the proposed opening of the courier service agency is by middle

of March in the year 2013.

The firm has decided to base its operations on innovative packaging in form of

thermoform film as well as sealing to ensure durability of package. It will also seal the parcel with

use of labels and stickers for writing the address. This will be followed by timely delivery and

safety of consignment through proper supply chain running. It will involve both inbound and

outbound supply chain management. The inbound process in case of Altomi Logistics will help to

maintain for the external procurement processes. On the other hand, the outbound process will take

care of all the essential activities that are required to send goods at their respective destination.

Both the processes in case of Altomi Logistics will cover successful execution of business and

provide for an integrated solution to monitor the flow of goods.

These are considered as key success factors which are clear on basis of primary research

which also shows that there is a huge potential for success. This will provide a competitive

advantage to present firm in a well established market that is governed by global players like Gati,

Blue Dart among a few. Currently Sri Lanka has emerged as an export oriented destination which

provides good going prospects for Altomi Logistics (Hanna, 2011). It is being assumed that Sri

Lankan economy will grow on at a rate of 7.2% on an annual basis. No unforeseen factors are




considered that may disrupt the normal flow of operations undertaken by firm (Tips to Start a

Courier Service, n.d).

The market for logistics industry is very huge due to presence of a large number of

competitors in form of Gati, DHL, Blue Dart and other established firms. The customer base

includes businesses dealing in textile, apparel, gems and tea for the purpose of export. Buying

behavior is influenced by quality, timely delivery, competitive pricing, distribution network and

promotional activities. These features can also provide competitive advantage to firm (History,

operations. Financial feasibility analysis has indicated that the firm has the potential to pay back

the initial investment in a very short span of time. It is found to be 2 years and one month. Also

the profit margin is considered to be 30% which is profitable.

From the analysis it is clear that firm can undertake competitive pricing strategy to cover

up initial costs and attract consumers. It must also promote its services via internet which is also

one of the core areas of its business. Online promotion will help the firm in long run and also tap

the long distance clients. Focussing on communication channels and distribution can also be made

a part of its marketing tactics.

In the operations segment it will require good supply chain management followed by on

loading and offloading equipments, transportation vehicles. It will also require facilities like

warehouse flooring and office. The information technology requirements will be in form of

computers, laptops and required software. This is advantageous as the company has focussed on



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providing online services to its consumers so as to tap the consumers who are at long distance from

the offices.

It will also have to make good relationships with consumers and other business partners to

ensure success of newly established venture. Proper recruitment of staff members in form of

operators, lorry and truck drivers, marketing personnel etc. is a key requirement. Training of all

the human resource personnel is also a must along with proper supervision of the operations. It is

also working on the principle of single ware house in Colombo which will help the company to

take into account multiple taxes levied by government. The future sustainability of present firm

can be affected by increased competition. Thus it must bring constant innovation in its offerings

along with competitive pricing to have a competitive edge (Culpan, 2002).

The entire analysis is an indicator of positive responses that makes the business set up

viable and worthy of investment. It will prove to be beneficial in the long run thereby making it

easier to get loans from banks as a source of initial start up fund.




CHAPTER 6: VIABILITY

The term viability of business plan refers to likelihood of success with respect to the

proposed business venture. The viability of a given business plan can be assessed by looking at

financial, organizational and other aspects of business both in general terms as well as in context

of client’s ability (Butler, 2012). Viability in a given business is only possible when there is a clear

cut understanding about given business conditions and market behaviour with respect to

consumers, government norms and policy and other aspects. This is irrespective of the amount of

capital that has been used to build the company. There is a requirement to be aware about needs

and aspirations of target market.

200 billion dollar ever year (GDP poised for 7.2% growth next year, 2012). There has also been

an increase in exports with respect to gems, jewellery, tea, apparels and textile among other

businesses. This can provide enough room for new players like Altomi Logistics. Presence of

global players like Blue Dart, Gati etc. is a cause of concern but can be counteracted by use of

innovative service option in form of packaging and proper sealing so as to ensure durability of

package and safety of contents (Postal, Freight & Courier Services, n.d).

Viability in terms of competitive advantages over rival firms can be ensured by timely

delivery of consignment. This should also accompany by following all the safety related

precautions in form of security guards etc. The company is also planning to insure all its operations

from theft, robbery and natural disasters in form of fire, earthquake etc. It is also to provide

insurance to all transporting vehicles in event of accidents (Tips to Start a Courier Service, n.d).



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The business plan also seems to be viable on financial terms. This viability helps to find

out whether the firm has sufficient income sources as well a capital to meet its operating expenses

and financial obligations so as to provide the potential for future growth (Titley and Moynihan,

2001). The start up capital requirements can be met easily by loans from banks etc. There is also

a huge potential to attract investors in long run towards the firm. (History, n.d). This is reflected

from the payback period of initial investment which is found out to be very low and is 2 years 1

month.

The firm also possesses organizational feasibility in terms of human and physical

resources. The firm has planned to recruit professionals who possess the requisite skills and

expertise that is needed in their respective area. Further improvements are planned to be made via

provision of proper training and development. The logistics company has the requisite skills and

capabilities in form of innovative business idea, good networking with prospective clients, proper

access to suppliers etc. It wishes to increase its supply chain network via well developed

communication and distribution channels (Baron and Shane, 2008). Online payment options,

communication flow via use of mobile and emails will ensure faster flow of information to have

an advantage. This will help to attract business groups who wish to export their consignment.

Online servicing will help to tap the need of long distance consumers as well. Presence of sound

business environment as well as governmental policies is also beneficial for present firm. The

government of Sri Lanka is taking steps in this direction. Hence the prospective business is viable

and can be move forward in order to ensure success (Evaluating the Feasibility of Business

Opportunities, 2009).




References Books and online journals

Abrahms, R. M., 2003. The Successful Business Plan: Secrets & Strategies. 4 thed. The Planning Shop.

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achieve the unexpected. Cambridge University Press.

George, G., and Bock, A. J., 2012. Models of opportunity: How entrepreneurs design firms to achieve the unexpected. Cambridge University Press.

Gilbert, T., 2004.Tony's Guide to the Courier Industry. Trafford Publishing.

Hanna, N. K., 2011. Innovation, Technology, and Knowledge Management: Seeking Transformation through Information Technology: Strategies for Brazil, China, Canada and Sri Lanka. Springer.

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Joseph A. and Covelo, B. J., 2006.The Complete Book of Business Plans: Simple Steps to Writing Powerful Business Plan. 2nd ed. USA: Sourceebook, Inc.

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Kumar, S. A., 2008. Entrepreneurship Development. New Age International.

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Ulrich, D., and Brockbank, W., 2005. The Hr Value Proposition. Harvard Business Press.

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[email protected]




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Appendix

Questionnaire 1- For Industry Experts

For making the Logistics and freight forwarding sector more vibrant and efficient by

offering tailor made services to the clients as per their specifications, our genesis for establishing

Altomi Logistics look for your assistance. To offer the best services in the industry to satisfy our

customers, we need your comments on the questions below, kindly aid in by providing the same.

Your help in answering these questions will be highly appreciated.

Demographic information:

Name

Current designation

Experience in the industry

E-mail

Contact

Q. 5. What regulatory framework is there in the industry?



[email protected]




Q. 6. Where should we start from? What is the most fascinating way to enter into the industry?

Q. 7. What sort of gap exists between the present services at offer and the market demand?

Q. 8. Do you have any other comments? If so, please state here:

Thanks for consideration!




Questionnaire 1- For Commercial individuals from the target customer group

For making the Logistics and freight forwarding sector more vibrant and efficient by

offering tailor made services to the clients as per their specifications, our genesis for establishing

Altomi Logistics look for your assistance. To offer the best services in the industry to satisfy our

customers, we need your comments on the questions below, kindly aid in by providing the same.

Your help in answering these questions will be highly appreciated.

Demographic information:

Name

Current designation

Experience in the industry

Company Name

E-mail

Contact

Subject related questions:

A. LKR 50,000 to 75,000

B. LKR 75,000 to 100,000

C. LKR 100,000 to 150,000



[email protected]




D. LKR 150,000 to 175,000

Q. 7. Do they assist in your supply chain function?

Q. 8. What medium of order placing you follow?

Q. 9. Do they provide any time consignment tracking facility?

Q. 9. Do you have any other comments? If so, please state here:

Thanks for consideration!
