SHUTTLE BUSINESS(LAX TO LA AND VENTURA COUNTY) BY RAJEEV VARMA DATLA SAIKRISHNA REDDY EPPA SYED MUHAMMAD ALI KAZMI MUHAMMAD MUDDASIR KHAN MAHEESHA SAMANTHAPUDI

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


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


VEHICLE USED BY THE COMPANY

• MODEL: FORD E150, 7 PASSENGER

• COST: $ 28,753 PER CAR

• 7 PASSENGER

• 3 DOOR

• MILEAGE : 14 MPG


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


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)


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


Chart Title

Chart Title


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


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


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


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


CASH FLOW DIAGRAM


1 2 3 4 5 6 7 8 9 10 11 12

-300000

-200000

-100000

0

100000

200000

300000

400000

Monthexpensesrevenue


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.

Documents

SHUTTLE BUSINESS(LAX TO LA AND VENTURA COUNTY) BY RAJEEV VARMA DATLA SAIKRISHNA REDDY EPPA SYED MUHAMMAD ALI KAZMI MUHAMMAD MUDDASIR KHAN MAHEESHA SAMANTHAPUDI