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 KhanVehicle Muhammad Muddasir KhanCities in LA and Ventura County Syed Muhammad Ali KazmiOffice & Staff Syed Muhammad Ali KazmiPermits $ License NajmussaqibAssumptions NajmussaqibFares SaiKrishna Reddy EppaStart Up Expenses SaiKrishna Reddy EppaMonthly Expenses Rajeev Varma DatlaProjected Profit and Loss Maheesha SamanthapudiBreakeven Analysis Maheesha SamanthapudiCash Flows Maheesha SamanthapudiConclusion 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 COUNTYCity Round trip miles Round trip travel

timeNumber 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 LICENSEPermit / License County/ State/

FederalBuilding and Construction Permit Los Angeles CountyBurglar Alarm Permit Los Angeles CountyBusiness License - Business Tax Certificate Los Angeles CountyFictitious Business Name - Doing Business As Statement Los Angeles CountyCorporation, Company or Partnership Filings California StateD.M.V. Pull Notice Program California StateDepartment of Motor Vehicles Occupational Licensing California StateRegistration Form for Employers California StateState Income Tax Inform California StateEmployer Identification Number Federal

Najmussaqib

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 3Driver $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

FARESCity FaresDowntown $40Burbank $35North Hollywood $35Glendale $25Long Beach $35West Covina $45Simi Valley $50Thousand Oaks $50Ventura $75Oxnard $70

SaiKrishna Reddy Eppa

START UP COSTSPurpose 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 $100SaiKrishna Reddy Eppa

Chart TitleChart 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 137.15Burbank 8 trips 137.15North Hollywood 8 trips 137.15Glendale 10 trips 142.85Long Beach 12 trips 205.75West Covina 8 trips 182.85Simi Valley 5 trips 142.85Thousand Oaks 10 trips 257.15Ventura 4 trips 160Oxnard 3 trips 102.85

SaiKrishna Reddy Eppa

MONTHLY EXPENSESPurpose Price

Salaries $150000Fuel cost $48175Vehicle maintenance $33720Rent $15000Vehicle Insurance $11500Advertisement $10000Utilities $5000Website Maintenance $500

Rajeev Varma Datla

Salar

ies

Fuel co

st

Vehicle

main

tenan

ceRen

t

Vehicle

Insur

ance

Advertis

emen

t

Utilities

Website

Mainten

ance

$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 YEARSYear 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 $6,280,278BTCF -$803,437 $978,028 $2,532,978Principal $665,480 $682,309 $699,563Interest $79,909 $63,080 $45,825Principal $49,519 $50,513 $51,527Interest $4,679 $3,685 $2,670.09Depreciation $59,650 $95,683 $57,829Taxable income $0 $815,580 $2,426,653Income taxes $0 $244,674 $727,995ATCF -$849087 $728,693 $1,804,982

PW= $1,118438Maheesha 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 RevenueMaheesha 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.